[ExI] rice price

Damien Broderick thespike at satx.rr.com
Sat Mar 29 04:30:29 UTC 2008


Uh-oh:

<http://www.ft.com/cms/s/0/d6f1cd74-fc29-11dc-9229-000077b07658.html>Jump 
in Rice Price Fuels Fears of Unrest
JAVIER BLAS and DANIEL TEN KATE - Financial Times (U.K.)


LONDON and BANGKOK -- 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.

On Friday the Indian government imposed further restrictions on the 
exports of rice to combat rising local inflation, with traders 
warning that the new regime would de facto stop all India's 
non-basmati rice sales.

The measures include raising the minimum price for selling abroad 
non-basmati rice by 53 per cent to $1,000 a tonne. Exports of premium 
basmati rice are likely to continue, although volumes could also 
suffer as the government also increased the minimum export price and 
scrapped export tax incentives.

While 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,' said Chookiat 
Ophaswongse, president of the Thai Rice Exporters Association. He 
forecast that prices would rise further.

The Philippines, the world's largest buyer of the grain, said on 
Thursday it wanted to purchase 500,000 tonnes after it failed to buy 
a similar amount earlier this month. It is struggling to import 
1.8m-2.1m tonnes to cover a production shortfall and on Thursday 
confirmed it would tap emergency stocks maintained by Vietnam and Thailand.

Rice is also a staple in Africa, particularly for small countries 
such as Cameroon, Burkina Faso and Senegal that have already suffered 
social unrest because of high food prices.

Thai rice, a global benchmark, was quoted on Thursday at $760 a 
tonne, up about 30 per cent from the previous daily quote of about 
$580 a tonne, according to Reuters data. Some traders, however, said 
the daily jump was not as steep, adding that Thai rice had already 
traded at about $700 a tonne this week.

Rice prices have doubled since January, when the grain traded at 
about $380 a tonne, boosted by strong Asian, Middle Eastern and 
African demand.




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