“As a majority of the poor in developing Asia live in rural areas and depend on agriculture, higher agricultural growth will raise farm output, reduce prices and raise incomes of poorer farm households,” says Ifzal Ali, Chief Economist of ADB.
As yields of food crops in most Asian economies remain low in comparison with other major producing nations, technology improvement has become increasingly important along with efficient use of water, power and other key inputs.
Mr. Ali says farmers will face complex adjustments as they make the transition to new farming systems and technologies.
The report, prepared by ADB’s Economics and Research Department, emphasizes that farmers will need to make the right choices and be provided access to new seeds, modern technology, and credit, and infrastructural facilities.
It adds that the recent surge in global food prices can undermine the region’s efforts to fight poverty and push large numbers of people back below the poverty line.
The report says structural factors like the decline in global stocks of rice and other cereals, rising oil prices and the resultant rise in prices of fertilizers and transportation costs for farm products are key factors behind high and rising food prices.
It urges governments to reevaluate their investment priorities and take steps to boost agricultural productivity to mitigate any longer-term rise in food prices.
