No need to hoard rice, HK govt assures shoppers
Straits Times 2 Apr 08;
HONG KONG - HONG KONG shoppers are stocking up on rice amid rocketing global food prices, a major retail chain Parknshop said yesterday, as the government tried to prevent any panic buying of the staple food.
'There is a sufficient supply of rice in Hong Kong. There is no need for the public to worry,' a spokesman for the Trade and Industry Department said in a statement released late on Monday.
'We understand that the recent price increase in Thai rice is mainly attributable to exchange rate changes and the global shortage of rice supply,' the spokesman added.
Shoppers have been clearing shelves in supermarkets of rice as they worry that price increases will be passed on to consumers, media reports said yesterday.
Parknshop said it was monitoring the situation closely, but had not yet passed on the price increases.
Hong Kong is extremely vulnerable to any change in global commodity prices as it imports almost all of its food from abroad, in particular Thailand, which supplies around 90 per cent of its rice.
The export price of Thai Hom Mali Rice, the main type on sale here, has jumped by more than 20 per cent in four weeks, the South China Morning Post said.
Bad weather in Bangladesh, pests and disease in Vietnam and political problems in Myanmar have pushed global rice stocks to a 25-year low and caused the price of rice to soar to nearly US$1,000 (S$1,380) per tonne.
Recent announcements in major rice-producing countries such as Vietnam and India about limiting exports to stabilise domestic supplies had also brought pressure on the price of Thai rice.
In New Delhi, the Indian government has banned the export of non-basmati rice to try to control soaring domestic food costs, the BBC reported yesterday.
The price for exports of aromatic basmati rice has also been raised to US$1,200 per tonne to discourage exports.
However, Thailand's Rice Exporters Association managing director Charin Hansuebsai said: 'There is no problem with production', referring to the availability of rice from the world's top rice exporter.
'Hong Kong, Singapore and Malaysia are not affected as they are our old customers, though we may not be able to take new orders from, for example, Africa,' he added.
Meanwhile, Chinese Prime Minister Wen Jiabao said China will be able to feed its 1.3 billion people with its local rice supply.
At a summit in Vientiane, Laos, on Monday, he admitted that the recent 30 per cent jump in rice prices did have an impact on China's food prices but said the country was largely able to meet its own rice needs, according to the China Daily.
In Manila, major Philippine fast-food chains have heeded the government's call to offer half-
servings of rice amid a looming shortage in the country's rice supply, media reports said yesterday.
Popular fast-food chain Jollibee now offers half-servings of rice at 5.5 pesos (18 Singapore cents) each. A full cup of rice costs 11 pesos.
Agriculture Secretary Arthur Yap said serving half-cups of rice would benefit customers who cannot consume an entire cup in one sitting.
His appeal came after a government study said around 22 million pesos worth of rice or 25,000 sacks go to waste daily.
Filipinos consume some 12 million tonnes of rice annually, 10 per cent of which are imported from other countries.
AGENCE FRANCE-PRESSE, XINHUA
Chinese premier says rice price hikes will not hurt supply
Channel NewsAsia 1 Apr 08;
BEIJING: China will be able to maintain adequate rice supplies to its 1.3 billion people despite recent sharp hikes in global prices for the grain, Premier Wen Jiabao said in comments reported on Tuesday.
"Please set your mind at rest because China has an abundant supply of rice," the China Daily newspaper quoted Wen as saying at a summit in Vientiane, Laos, on Monday.
"China is capable of feeding itself with its own rice production."
Wen admitted the recent 30-percent jump in rice prices did have an impact on China's food prices but said the country was largely self-reliant in the grain, according to the report.
He said China had stockpiled about 40-50 million tonnes of rice.
Wen also pointed out that the volume of rice traded on the world markets was less than a tenth of that in the Chinese market, the newspaper said.
The Chinese premier said the central government had taken a number of measures to promote farming, such as raising farm subsidies, building irrigation works, and improving technologies, the report said.
Experts have warned about the future availability of rice as only a few countries have large surpluses of the grain, and some of the biggest producers are having difficulties growing enough to feed their own people.
China's rice exports, though, increased 49.7 percent in January to reach 138,000 tonnes compared with the same period last year, the China Daily reported.- AFP/so
Hong Kong shoppers snap up rice as global price rockets
Channel NewsAsia 1 Apr 08;
HONG KONG : Hong Kong shoppers are stocking up on rice amid rocketing global food prices, a major retail chain said on Tuesday, as the government tried to prevent any panic-buying of the staple food.
"There is a sufficient supply of rice in Hong Kong. There is no need for the public to worry," a spokesman for the trade and industry department said in a statement released on Monday.
The statement said they had imported more rice than at the same stage last year and stockholders were obliged to keep large reserves.
"We understand that recent price increase in Thai rice is mainly attributable to exchange rate changes and global shortage of rice supply," the spokesman added.
Shoppers have been clearing shelves in supermarkets of rice, as they worry that increases will be passed on to consumers, media reports said Tuesday.
Hong Kong is extremely vulnerable to any global commodity prices, as it imports almost all of its food from abroad.
Around 90 percent of the city's rice is imported from Thailand. The export price of Thai Hom Mali Rice, the main type bought here, has jumped more than 20 percent in four weeks, the South China Morning Post said.
Parknshop, one of the Hong Kong's largest retailers, said it was monitoring the situation closely, but had not yet passed on the price increases.
"We have seen increased buying, customer demand is quite high, but we are replenishing," Jasmine Hui, the spokeswoman for Parknshop, told AFP.
"We would like to stress that we do have enough supply, and it has been quite steady. We are facing pressure (on price), however, we are trying to absorb the difference."
A combination of bad weather in Bangladesh, pests and disease in Vietnam and political problems in Myanmar have pushed the global price for rice close to 1,000 dollars per tonne.
The recent rises have been matched across a range of agricultural commodities, as increased global demand along with a boom in growing crops for fuel instead of food has pushed up prices. - AFP/de
Wen guarantees supply of rice to HK, Macau
Business Times 2 Apr 08;
(HONG KONG) Chinese Premier Wen Jiabao has promised to ensure rice supplies to Hong Kong and Macau following panic buying triggered by soaring prices, after several top global suppliers curbed exports of the staple.
'No matter if it is rice or other agricultural products, the central government can guarantee the supply to Hong Kong and Macau,' Mr Wen was quoted as saying in the South China Morning Post yesterday. 'Hong Kong and Macau residents, please don't worry.'
China, the world's top producer and consumer of rice, has stopped grain exports to ensure domestic supplies, but is making exceptions for Hong Kong, Macau and Taiwan.
The China Daily quoted Mr Wen as saying in Vientiane, where he was attending an environment summit, that China had stockpiled about 40 million to 50 million tonnes of rice.
Some supermarkets in Hong Kong have run out of rice as consumers dashed to stock up for fear of shortages - sparked by price increases in rice from Thailand, which accounts for about 90 per cent of the territory's supply.
US rough rice futures on the Chicago Board of Trade notched up all-time highs of above US$20 per hundred weight overnight and have risen about 45 per cent so far this year supported by export curbs by major suppliers, including Vietnam and India.
But Charin Hansuebsai, managing director of the Rice Exporters Association in Thailand, the world's top rice exporter, told the South China Morning Post: 'There is price pressure, but it's not that serious . . . The supply of Thai rice is normal.'
'There is no problem with production . . . Hong Kong, Singapore and Malaysia are not affected as they are our old customers, though we may not be able to take new orders from, for example, Africa.' - Reuters
Rice Crisis: Price of rice shoots up across Asia
No cause for concern in Singapore, but cost has gone up
The New Paper 2 Apr 08;
PANIC in Hong Kong.
Unrest in the Philippines.
Queues in Cambodia and concern in Malaysia.
It's all about rice - Asia's staple diet.
As rice prices spiral up and up, worry lines are growing across the continent.
On Sunday, shoppers in Hong Kong wiped clean supermarket shelves selling rice.
Some outlets posted notices that all rice has been sold out.
The panic buying was a result of news on Thursday about a possible 30 per cent surge in the price of rice imported from Thailand.
Ninety per cent of rice that comes to Hong Kong is from Thailand.
The Hong Kong newspaper, The Standard, reported that the territory's Consumer Council has appealed to buyers to stay calm as their over-reaction will drive up the price even further.
Hong Kong Federation of Restaurants and Related Trades chairman Simon Wong Ka-wo said some restaurants, which do not have enough rice stocks, may increase the price of plain steamed rice by HK$1 (18cents) to HK$2 a bowl.
HOT INTERNATIONAL MARKET
However, the international rice market is red hot.
According to the Wall Street Journal, on Thursday the price of medium-grade rice exported from Thailand - a de facto market benchmark - reached US$760 ($1,050) a metric tonne, up from US$360 at the end of last year.
A day later, India set US$1,000 a tonne as the minimum price for rice exports.
The aim of the Indian government is to encourage dealers to sell to the domestic market instead of waiting for prices to go up.
But farmers in Thailand and elsewhere appear to be willing to wait for higher prices, and to default on contracts if necessary.
It has even resulted in rice rustling. Farmers whose farms have not been harvested are keeping vigil over their crop.
CRACKDOWN ON HOARDING
In the Philippines, people have been protesting the increase in rice prices.
Last week, President Gloria Macapagal Arroyo, afraid of increasing rice scarcity, ordered government investigators to track down hoarders.
Bloomberg news has it that Philippine investigators are raiding rice warehouses as the world's biggest buyer of the grain cracked down on hoarding.
One warehouse was caught repackaging bags of rice from subsidized government supplies for sale at open market prices.
Rice is a political commodity in the Philippines, and any fluctuations in price and shortages in supply could potentially create unrest, analysts have warned.
Last week, the Philippines signed a deal with Vietnam to supply 1.5 million tonnes of rice this year to avoid a shortage, and has also bought stocks from Thailand and Pakistan.
There is no cause for concern with availability of rice in Singapore but the cost has gone up.
In neighbouring Malaysia, Deputy Prime Minister Najib Razak told reporters yesterday that the government has no plans to increase domestic rice prices despite surging world prices. But it will step up efforts to boost stockpiles of the grain.
Malaysia regulates the price of rice, which is one of the items it subsidises.
'We know the market is tighter now, so we have to step up efforts to increase the supply of rice as part of our stockpile. We have to source around the region,' said MrNajib.
Cambodia, suffering from spiraling costs, announced a two-month ban on rice exports last week. Prime Minister Hun Sen said on 26 Mar: 'It's a temporary measure. But it is to ensure food security.'
To ensure rice is available to its citizens, some countries are cutting down on exports.
Vietnam, the third-biggest rice exporter after Thailand and India last year, will reduce shipments by 11 per cent this year to 4 million tonnes.
Indonesia, which is a big importer of rice, expects a better harvest this year. It is considering curbs on exports.
PRICE HIKE FACTORS
Several factors are contributing to the steep rise in prices.
The Guardian has it that severe weather across Asia has damaged production. Record icy temperatures were recorded in China and Vietnam. Bangladesh endured a devastating cyclone while Australia suffered a prolonged drought.
'It's been described as a 'perfect storm' of factors that have pushed prices to their highest levels since the 1970s,' said Adam Barclay, of the International Rice Research Institute.
South-east Asian govts putting a stop to hoarding
Straits Times 3 Apr 08;
MANILA - AS RICE prices continue to rise and stockpiles shrink, governments in South-east Asia are moving to clamp down on hoarders in a bid to ensure enough supplies of the staple for all.
The Philippine authorities yesterday ordered police to arrest hoarders and illegal traders, while the Thai government is requiring buyers to show their home registration booklets.
The strict actions come amid fears that traders are hoarding or smuggling rice to take advantage of the rising prices, squeezing supply and pushing up prices even further.
In the Philippines, police will be deployed to warehouses owned by the National Food Authority, the state rice-importing agency, to prevent any pilfering by rogue traders.
The move is aimed at pre-empting the 'impact on peace and order of price rises not only in rice but other basic commodities' as well, said national police operations chief Silverio Alarcio. 'We will... hit hard the hoarders who are causing this artificial crisis.'
Some of the Philippines' largest fast-food chains have started serving half-portions of rice but the move has not gone down well with customers.
In Thailand, the government will release 650,000 tonnes of rice from national stockpiles to be sold cheaply, so that the poor can afford it.
But buyers will need to produce their house-registration booklets to buy the 5kg bags, which will not be sold in supermarkets - restrictions which the government hopes will prevent hoarding by consumers or traders.
Rice prices in Thailand and Vietnam - the world's two leading exporters of the grain - meanwhile are expected to surge after India's ban on exports of non-basmati rice.
Traders said the ban - imposed on Monday to ease pressure on domestic prices - might trigger a scramble among rice importers to secure supplies, pushing up prices.
Yesterday, Indonesia said it may join China, India, Vietnam and Egypt in curbing exports. Such moves will cut global exports of the grain by 3.5 per cent this year, the Food and Agriculture Organisation said yesterday.
However, it had some good news: Prices may fall back in the coming months, thanks to harvests in Brazil, Uruguay, Bangladesh, India, Indonesia and Thailand. Global production of rice is forecast to rise by 1.8 per cent.
AGENCE FRANCE-PRESSE, THE NATION/ASIA NEWS NETWORK, REUTERS
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