Rice prices have been rising in the last months but stabilized in January while wheat flour prices, although remained stable, were very high, mainly due to import dependence.
Although food security has improved, poor groups particularly children suffer from high levels of malnutrition. Agencies are concerned over a serious food security situation.
Over 1 million people were affected by floods earlier in the year in the east and central parts of the country. Flooding damaged also paddy crop in the main (Maha) season, but rice output for 2011 was still good.
The Government is supporting domestic production through wheat import duties and incentives for farmers such as input subsidies and irrigation development.