Rice Prices Soaring
4 04 2008All commodity prices are soaring and rice is no exception. Rice is trading at an all time high as annual demand is increasing and outstripping supply. Several governments are curbing their exports.
Rice, is the major staple for about 3 billion people, has doubled in price over the last year on the commodity exchanges. It is estimated by the World Bank that 33 countries face potential social upheaval over such sharp price increases in rice and other basic staples. China, India, Viet Nam and Egypt have instituted curbs on exports with Indonesia most likely to join in on the curbs.
China experienced an 8.7 percent consumer price increase in February the highest in 11 years, while food prices jumped 28 percent, the most since last July.
The sharp rise in prices has put the 3rd world countries on edge and face potential social unrest if nothing is done to stop the soaring increases. The United Nations has warned that several countries face food emergencies this year as stockpiles are at a 26 year low for rice.
Will weather come to the rescue?
For further insight read the Bloomberg article, click here.
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