Emerging Markets / August 24, 2016

Agricultural Production along the Indian Ocean

Throughout history, the Indian Ocean world has been a highly productive yet somewhat self-contained cosmos. Renowned for the production of spices such as pepper and cinnamon as well as the cultivation of coconuts, this article explores the commercial and agricultural dynamics that dominate the Indian Ocean region.

Agricultural Production along the Indian Ocean

Most of south Asia, from India and Pakistan to Vietnam and Indonesia, is composed of highly productive tropical lands that receive substantial amounts of rain every year. This climatological reality stands in stark contrast with that of the Middle East and the Horn of Africa, whose weather is dry and arid. Therefore, it should come to no surprise that Middle Eastern economies import large amounts of agricultural goods from other South Asian nations. For example, India, Pakistan, and Thailand are the key rice suppliers to the United Arab Emirates (UAE), whose 2016/2017 rice imports are expected to reach 1.29 million metric tons. In this regard, Middle Eastern countries prefer to import commodities and goods from neighboring Indian Ocean nations due to the lower freight costs. Likewise, the agricultural staples of the Indian Ocean, such as basmati rice, are consumed and produced by societies throughout the region. Similarly, the Indian Ocean cosmos incorporates Australia, which is the top producer of the barley imported into the UAE.

Another agriculturally productive region within the Indian Ocean world is East Africa. The economies of Kenya, Tanzania, and Mozambique are exporters of agricultural goods such a wood, nuts, cotton, sugar, tea, and coffee. Similarly, the east coast of Africa, because of its traditionally mild waters has historically been a major fishing region. However, depletion of fisheries and climate variations have upset the East African fishing industry over the last decade.

Climatological Dynamics

As mentioned above, Southeast Asia and the eastern Indian Ocean are characterized by heavy rains, a tropical climate, and humidity. These weather characteristics allow for certain types of water intensive agriculture, such as rice cultivation, to flourish in this region. Meanwhile, less intense rains, dryer climates, and milder oceanic temperatures characterize East Africa and the western Indian Ocean. This climate has historically facilitated high fishing yields. However, due to climate variations, these weather characteristics have been changing over the last several decades.

Climate variations in the Indian Ocean shift the Trade wind patterns and warm water currents westward towards East Africa and the Arabian Sea, thus creating a dynamic similar to that of El Niño in the Pacific. This change in weather pattern leads to a lack of fish in the western Indian Ocean as well as heavy rains and storms off the East African coast because of the warmer oceanic temperature. Consequently, flooding affects crops in countries, such as Kenya and Tanzania, and there is a spike in mosquito-borne diseases. Meanwhile, colder waters in the eastern Indian Ocean lead to severe droughts and agricultural losses in the regions of Australia and Southeast Asia.

Finally, even though the Indian Ocean is smaller than the Pacific and the Atlantic, it is estimated that it has the largest petroleum reserves, accounting for more than one-third of the world’s unexploited supply. Similarly, most of the world’s oil trade transits through the Indian Ocean.

(Read more about Agriculture and Commerce in the Persian Gulf)