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Although
not seen as an item of global import, rice production worldwide is
probably one of the most important issues of the modern day. World
rice production in 2007 was approximately 645 million t. At least 114
countries grow rice and more than 50 have an annual production of
100,000 t or more. Asian farmers produce about 90% of the total, with
two countries, China and India, growing more than half the total crop.
Rice
prices hit record highs recently, exacerbated by government attempts
to control exports and keep prices lower for the increasingly
restless domestic market. Thailand is the latest country to consider
slowing rice exports, according to press reports on Thursday, which
would coincide with India, Vietnam, Cambodia and even Egypt's recent
moves to ease pressure on domestic supplies.
Rough
rice futures for May delivery rose 41 cents, hitting a near-record
of $20.20, in on the Chicago Board of Trade. The price pared back
slightly after hitting a record of $20.26, earlier.
But
Europeans will not be as focused on rice as they are on other
commodities like wheat, which is also hitting records on the back of
supply worries, heavy investing and rising energy costs.
Rice
is a staple diet of the Asian territory and the commodity is under
pressure as demand for protein and meat increases in Asia, leaving
fewer crops available for domestic consumption.
According
to the United Nations Food and Agriculture Organization, rice
production in the European Union is expected to rise this year,
assuming weather conditions stay normal. But crop worries in the
United States and Australia could spell further uncertainty for the
international rice market.
The
World Bank estimated that 33 countries faced "social
unrest" because of soaring food and energy prices. The
international rice market is currently facing a particularly
difficult situation with demand outstripping supply and substantial
price increases.
A
forecasted increase in global rice production is the first step in
easing the rice panics which have swept through many regions of the world.
"Higher
rice production in 2008 could reduce the pressure, but short-term
volatility will probably continue, given the very limited supplies
available from stocks," said Food and Agriculture
Organization.
Global
rice production is expected to increase by 1.8%, or 12 million tons
in 2008, according to the United Nations Food and Agriculture
Organization, easing the tight supply situation in key cultivating
countries.
Recently,
Philippines President Gloria Macapagal Arroyo said that there is no
rice shortage; however, she said, people will just have to pay more.
She claimed that all this talk of "rice shortage" is
imaginary. However, last year the government imported 1.4 million
metric tons of rice from Vietnam to fill a 10% shortage in domestic
rice production.
This
year, in an unprecedented call to the Vietnamese president, Arroyo
asked for a guarantee of 1.5 million metric tons of rice. With a
rapidly diminishing domestic production, the government has to import
20 percent -- about 2.5 million metric tons -- to avert a rice crisis
this year.
It
is interesting to note that the world price of rice in 2003 was only
$200 per metric ton. Last year it was around $300. Currently at $700
per metric ton, the market price is anticipated to soar to as much as
$1,000 per metric ton.
Alleviation
of poverty is an additional force behind the rising demand for rice.
Millions of Asians and Africans still have rice only once a day, if
at all. The need for rice will be an estimated 70 percent higher in
2025 than it is today. Yields must more than double just to maintain
current consumption levels. They must increase still more if
malnutrition and poverty in Africa and South Asia are to be overcome.
So
here in Britain it looks as though the pressure on Asian and
Oriental restaurants, traditionally high users of rice, will
continu,e with all of us ultimately paying more for this staple
product that we have all taken so casually in the past. The days of
cheap rice seem to be past.
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