April 23, 2008
Bangkok - The world’s rice crisis tends to escalate as the price of the 5% white rice, benchmark for world’s rice price, rose 10% in Bangkok.
The price of the 5% white rice (Grade B white rice) in Bangkok rose over 950 US dollars per ton last week.
The price tripled from the beginning of 2007 and was considered an unprecedented high price.
The rice price which keeps soaring is a threat to many Asian governments. It can not only trigger hoarding, but also possibly leads to riots.
Many countries are affected by the fast-growing inflation which is caused by hiking oil and food prices.
Thailand, world’s biggest rice exporter, and Vietnam, world’s second biggest rice exporter, are both trying to encourage their people to grow rice more.
Some Thais are growing rice to serve the market’s demand while others are reluctant due to cost concerns.
The price of bagged white and jasmine rice dropped by 5-10% last week.
