Supply Response to Food Price Changes in Asian Countries

Abstract

Primary commodity prices have been increasing, especially since the early 2000s and at an accelerated pace during 2007–08, with implications for food security in the developing world. Against this backdrop, much recent research has focussed on understanding the causes and consequences of food price increases. The objective of the present analysis is to examine how food commodity and input prices have affected the supply of the former in 10 Asian economies. This analysis assumes greater significance in the context of the recent surge in oil and food prices, and its persistence. If, for example, oil prices continue to rise — as feared on present evidence — the food price surge may also persist.

We are grateful to Thomas Elhaut, Director, Asia and the Pacific Division, IFAD, for his encouragement and advice at all stages of this study. C. Peter. Timmer, R. Jha, Anil Deolalikar and Nidhi Kaicker offered constructive suggestions that helped in refining the analysis. We would like to thank Bina Agarwal for useful editorial advice. Any remaining deficiencies are our responsibility.