Thai rice hits new record, feeding food fears
Updated: 2008-04-25 15:29
BANGKOK -- Rice prices in Thailand, the world's top exporter, surged to $1,000 a tonne on Thursday, feeding concerns about food security as far as the United States after export curbs by governments worldwide.
The surging price of food and fuel has sparked riots in Africa and Haiti and raised fears that millions of the world's poor will struggle to feed themselves. Some analysts, however, attribute much of the surge to panic buying by both consumers and governments rather than a dire shortage of supply.
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After this week's over five percent jump rice prices stand nearly three times higher than the start of the year. With no sign of the rally relenting, as traders expect more buyers to come into the market, government anxiety about social unrest from the soaring cost of Asia's staple will deepen.
The crisis, started with India's imposition of export curbs to protect domestic supplies last year, and was felt in the United States this week, with a few major retailers saying they had started to notice signs of panic buying.
Sam's Club, a unit of retail giant Wal-Mart, said on Wednesday it was capping sales of 20-pound (9 kg) bulk bags of rice at four bags per customer per visit to prevent hoarding.
The previous day, rival Costco Wholesale Corp said it had seen increased demand for items such as rice and flour as customers, worried about global food shortages, stocked up.
"Everywhere you see, there is some story about food shortages and hoarding and tightness of supplies," said Neauman Coleman, an analyst and rice broker in Brinkley, Arkansas.
NEW ERA?
In Bangkok, some traders said Thai 100-percent B grade white rice, the world's benchmark, could hit $1,300 a tonne due to unsated demand from number-one importer the Philippines, which fell well short of filling a 500,000 tonne tender last week.
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