The rice industry

Rice producers typically farm just a few hectares. They are highly vulnerable to climate change because rice is traditionally grown on heavily flooded fields, often near the coast where there’s also the risk of salt water contamination.

Small-scale rice farmers urgently need better equipment, storage facilities and modern farming methods to improve productivity and tackle the impacts of climate change - but low prices and volatile markets mean they can’t afford to invest in the future.

Current challenges

Despite its status as a dietary cornerstone, the rice production sector contends with pressing issues that demand attention.

• Labour struggles: Farmers often contend with insufficient income that fall below the poverty line, coupled with demanding work hours and precarious employment conditions. The prevalence of short-term contracts exacerbates the vulnerability of the workforce, mirroring issues seen in other agricultural industries.
  
• Water scarcity and Irrigation Issues: Rice cultivation is heavily reliant on water, and in many regions, water scarcity poses a significant challenge. The extensive use of water for irrigation can lead to the depletion of water resources and conflicts between agricultural needs and the broader community. Implementing efficient irrigation systems and water management practices is crucial for sustainable rice farming.
• Climate vulnerability: Rice production faces the challenges of climate change, including altered weather patterns, rising temperatures, and increased frequency of extreme events. These factors pose risks to yields and necessitate adaptive measures to secure a stable rice supply in the face of a changing climate.
  
• Post-harvest losses and storage challenges: After harvesting, rice is susceptible to post-harvest losses due to factors such as inadequate storage facilities, pests, and fungal infections.

“Fair and organic production saves a lot of costs. We receive a correct and fair quality check. We produce good quality rice for which we receive a good quality price.”

Somboom, rice producer, OJRPG Thailand

How Fairtrade makes a difference

There are a number of ways Fairtrade farmers can confront the challenges they face to grow their businesses.

• Fairtrade Minimum Price: Fairtrade rice farmers get a more stable and fairer price for their crops through the Fairtrade Minimum Price. Those with both Fairtrade and organic certification get even more.
  
• Fairtrade Premium: Producers decide for themselves how to spend the Fairtrade Premium, whether investing in their business, farming, community or environmental projects that matter most to them.
• Support for small-scale producers: Fairtrade also works with rice farmers in India who don’t yet have the structures needed to get certified as small producers. Instead, they have formed contract producer organisations, selling their rice to an intermediary that supports them to become certified Fairtrade small-scale producer organisations over time.
• Climate resilience: Fairtrade provides training and support on sustainable rice farming, including better use of water resources, salt-resistant crop varieties and diversifying into climate-resilient income streams.
• Stronger together: Fairtrade’s approach also fosters stronger farmer organisations, which are better suited to implement collective improvements such as communal water management and crop processing facilities.

Fairtrade rice is good for people, planet and business. Find out how your company can get involved.