Importers say supplies are not at risk, but consumers can expect to pay more soon
Nicholas Fang, Straits Times 9 Apr 08;
THE fast-rising global price of rice shot up to yet another record high yesterday and is now nearly double the average price last year.
But local importers say there is no need for Singaporeans to hoard the grain since the main supplier here, Thailand, is expected to continue exporting significant quantities of rice.
However, the local importers expect the impact of the latest rise to flow through to supermarket shelves.
But Mr Jimmy Soh, managing director of rice importer Chye Choon Foods, said there was no need for consumers to buy more rice than they need.
'I don't think that there is a need to panic or hoard rice at the moment. We get most of our supplies from Thailand, and they will continue to export rice as it is one of their main exports, so rice will not run out.'
As others have pointed out, hoarding creates an artificial demand which will only serve to drive up prices even further.
Also, rice does not keep indefinitely. Weevils start appearing within two to three months.
Yesterday, a global benchmark rice price hit a high of US$21.50 (S$30) per 100lbs (45kg) in the United States before closing at US$21.465, up 2.2 per cent on the day. This is nearly double the average price of US$11.12 last year, Bloomberg data showed.
Globally, dramatic rises in prices of rice and other foodstuffs, such as coffee and sugar, have prompted grim warnings.
World Bank president Robert Zoellick told reporters on Monday that global food stocks had fallen to a level that was bordering on an emergency, Associated Press reported.
He said this was due to strong food demand, dietary changes and the use of biofuels as an alternative energy source. Some biofuels such as palm oil are also foodstuffs.
'This is not a this-year phenomenon. I think it's going to continue for some time,' he said.
World Bank forecasters believe there is a serious risk of a poverty surge which could reverse gains made over the past five or 10 years in some countries.
The rice price surge comes amid global fears of rice shortages, and as the Philippines announced plans to buy one million tonnes to ensure adequate supplies. The Philippines is the world's No. 1 rice importer.
Rice prices are up about 19 per cent in the past month as major producers such as China, Egypt, Vietnam and India curbed exports to stem inflation and guard stockpiles.
Higher food prices are likely to persist for most of this year, said Standard Chartered in a recent report.
Rice prices soar
Philippines plan to buy 1m tonnes amid warning to hoarders
Today Online 9 Apr 08;
The price of rice climbed to a record high for a fourth day as the Philippines, its biggest importer, announced plans to buy 1 million tonnes and some of the world's largest exporters cut sales to ensure they can feed their own people.
Rice, the staple food for half the world, gained 2.4 per cent to US$21.50 per 100 pounds in Chicago, more than double the price a year ago.
Philippine President Gloria Arroyo vowed yesterday to crack down on hoarding and said she would jail anyone found guilty of "stealing rice from the people".
"The need to avert social tensions from high food prices" has made "food sufficiency even more urgent", said Standard Chartered commodities analyst Abah Ofon.
China, Egypt, Vietnam and India, representing more than a third of global rice shipments, curtailed sales this year to protect domestic stockpiles.
The World Bank in Washington said 33 nations from Mexico to Yemen may face "social unrest" after food and energy costs rose for six straight years.
The Philippines is tightening controls over domestic sales and boosting overseas purchases to curb price rises and avoid the kind of unrest experienced by some African countries. The government plans to buy more rice this month and next month.
The South-east Asian nation may raise imports of milled rice by as much as 42 per cent to 2.7 million tonnes this year from 1.9 million tonnes last year to discourage speculation by local traders, Philippine Agriculture Secretary Arthur Yap said recently.
Rising food prices are fuelling global inflation. Wholesale costs in India rose 7 per cent in the week ended March 22, the fastest in more than three years. — Bloomberg
