Thread: Jump in Rice Price Fuels Fears of Unrest

Wheat, flour, and now rice...can a famine in underdeveloped countries be far behind?


Jump in rice price fuels fears of unrest

By Javier Blas in London and Daniel Ten Kate in Bangkok

Published: March 27 2008 18:30 | Last updated: March 27 2008 18:30

Rice prices jumped 30 per cent to an all-time high on Thursday, raising fears of fresh outbreaks of social unrest across Asia where the grain is a staple food for more than 2.5bn people.

The increase came after Egypt, a leading exporter, imposed a formal ban on selling rice abroad to keep local prices down, and the Philippines announced plans for a major purchase of the grain in the international market to boost supplies. Global rice stocks are at their lowest since 1976.

EDITOR’S CHOICE
Indonesia warns of unrest as food prices rise - Feb-27Editorial Comment: Biofuels will not feed the hungry - Feb-25High food prices may force aid rationing - Feb-24Wheat prices in biggest one-day rise - Feb-25MF Global takes $141m hit trading wheat - Feb-28MF Global counts the costs - Feb-29While prices of wheat, corn and other agricultural commodities have surged since late 2006, the increase in rice prices only started in January.

The Egyptian export ban formalises a previously poorly enforced curb and follows similar restrictions imposed by Vietnam and India, the world’s second- and third-largest exporters. Cambodia, a small seller, also on Thursday announced an export ban.

These foreign sales restrictions have removed about a third of the rice traded in the international market.

“I have no idea how importing countries will get rice,â€

I DONT GET WHAT THE ROOT OF THE PROBLEM IS. IS IT JUST THAT THESE COUNTRIES HAVE LESS RICE....OR MORE PEOPLE? WHY THE BAN ON EXPORTING RICE? IS THERE A DROUGHT?