Malaysia is working hard to stabilize their rice imports, prices and supplies, all the while affecting exchange traded funds (ETFs) within agriculture.

The country is ready to trade palm oil to any rice-exporting country in an effort to stabilize domestic supply of rice, reports the Associated Press.

This type of barter deal is sure to help Malaysia stockpile its rice, and add a new dynamic to the global rice diplomacy. Malaysia is the world’s second-largest producer of palm oil, and imports around 27% of its rice needs annually. The hope is that they will cut imports to 14% by 2010.

Agriculture ETFs sure to feel the growth:

• PowerShares DB Agriculture (DBA), up 9.9% year-to-date
• iPath Dow Jones AIG Grain ETN (JJG), up 6.7% year-to-date
• Elements/Rogers International Commodity Index (RJA), up 1.5% year-to-date

And the mother country’s ETF, iShares MSCI Malaysia Index (EWM) may get a boost as it trades one valuable commodity for another. It could use the lift, too: year-to-date, it’s down 8.1%.

Tags: Agriculture, Asia, Commodity ETFs, DBA, ETNs, Malaysia