Riots, Unrest Predicted as Price of Rice Soars

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Riots, Unrest Predicted as Price of Rice Soars

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Rice is produced worldwide and is the primary staple for more than half the world’s population, according to the USDA Economic Research Service’s Rice Report. So when prices for this food staple and others skyrocket overnight, it’s not surprising to see that riots and unrest are being predicted around the world:

Philippine activists warn about possible riots. Aid agencies across Asia worry how they will feed the hungry. Governments dig deeper every day to fund subsidies. Part of a surge in global food costs, rice prices on world markets have jumped 50 percent in the past two months and at least doubled since 2004. Experts blame rising fuel and fertilizer expenses as well as crops curtailed by disease, pests and climate change. There are concerns prices could rise a further 40 percent in coming months. — International Herald Tribune, March 28, 2008

Rice prices jumped 30 per cent to an all-time high on Thursday, raising fears of fresh outbreaks of social unrest across Asia where the grain is a staple food for more than 2.5bn people. — Financial Times, March 27, 2008

While I’m no expert on food prices, I did find some interesting data about this commodity known as rice. For instance, one chart shows the six leading rice-exporting countries (Thailand, Vietnam, U.S.A., India, China and Pakistan) while another shows the nine leading rice-importing countries (Indonesia, Brazil, European Union, Bangladesh, Iran, Saudi Arabia, Japan, China and the Russian Federation).

It will be interesting to see how things shake out during the next few weeks and months as the impact of rising food prices continues to be felt worldwide.For some background on the possible causes of these high food prices, check out these posts:

I know it when I see it! Corn Ethanol is…; and

Rising Food Prices Due to Alternative Fuels Push

-- Bob McCarty Writes