Global Food Crisis Looms As Asia's Rice Bowl Empties and World Price Soars

GLOBAL FOOD CRISIS LOOMS AS ASIA'S RICE BOWL EMPTIES AND WORLD PRICE SOARS

Saturday, 19 April 2008


The crisis over rice showed no signs of easing yesterday as the price of the world's benchmark jumped 10 per cent in just one week, fanning fears that millions across Asia will struggle to afford their staple food.
In a clear sign of the strain on output after major exporters began to curb exports earlier this year, a tender from the Philippines, the world's top importer, attracted offers to sell only about two-thirds of the half a million tonnes it sought.

In Bangkok, Thai 100 per cent B grade white rice, considered the world's benchmark, hit $950 (£482) per tonne, three times its price at the start of 2007.

"There's been a popular misconception that the world can produce as much food as it likes. Well, it obviously can't. And Asia can't feed itself at the moment," Gerry Lawson, the chairman of Sunrice, a major Australian rice producer, said.

Increased food demand from rapidly developing countries, such as China and India, the use of biofuels, high oil prices, global stocks at 25-year lows and market speculation are all blamed for pushing prices of staples such as rice to record highs around the globe.


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