Lowly Rice Grain Impacts Global Economy

By John E. Carey
Peace and Freedom
March 29, 2008
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In Asia and the Middle East the price of rice has doubled.  Philippine fast food stores have cut rice portions in half.  Rice exporting countries are hoarding rice to feed their own people.

So one of the smaller grains used as a food source is now clobbering the global economy. And many consumers of rice live near the poverty level.

Egypt, India, Vietnam, Cambodia and Thailand this week all announced new limits on rice exports.  Rice production is way down in China and Pakistan, where a colder than normal winter month are making for a shorter growing season this year.

In Vietnam, two bad crop seasons in a row have decreased rice supplies.

People consume rice as a staple of life in China, thoughout Asia, the Middle East and Spanish speaking countries so a doubling in price is a big deal.

As people in the United States fret about a slow down in the economy, supplies of most foods are still very plentiful.  But already in the Philippines, which imports most of its rice, a slow down by rice exporters and staggering prices are causing concern, and some fear, may lead to unrest and certainly more black market deals in rice.

One Asian economist told us, “It isn’t a rice war yet; but we are getting close.”

Related:

Vietnam and India move to limit rice exports

Inflation and Food Shortages?

Vietnam rice troubles could affect region