The quiet revolution in staple food value chains: enter the dragon, the elephant, and the tiger

Is there a difference between the current and the traditional value chains of staples in Asia? This study investigates how domestic staples value chains are structured and performing in three Asian countries (Bangladesh, China and India) in recent years.

The paper clarifies that stakeholders of rice and potato value chains were surveyed in key rural producing centers that serve the large urban centers of the three economies.

Findings are that:

• a transformational modernisation is under way in these staple food chains, albeit at different speeds
• this transformation is a “quiet revolution,” as these changes are grassroots in nature
• government’s roles have been important in enabling and at times providing incentives for the transformation

The document concludes that value chain transformation is important to farmers’ incomes, rural employment, and access to and affordability of staples for urban consumers.

Recommendations are as follows:

• harnessing the value chain transformation for food security should be front and center in the policy agenda of the 21st century
• a suite of policy and program measures is needed at various levels of the supply chain in order to stimulate the efficiency and competitiveness of expanding staples markets
• in this context, a cluster of activities that supported various parts of the value chain in an integrated way is critical
• yet, government strategies need to be tailored to widely different situations, and the provision of subsidised inputs should be reviewed and revised
• remaining limitations on FDI (which is needed in logistics and retail) as well as unnecessary direct government intervention in the value chains should be reduced or eliminated
• a concerted public policy debate on how to get midstream and downstream businesses to invest in upgrading equipment and expanding activities is needed