Asian countries finding ways amid soaring rice prices
Updated: 2008-04-11 14:43
PRICE HIKE CONTINUES
Rice prices have almost doubled in just a year in Bangladesh, which suffered an annual food inflation of 16 percent after massive floods in July and August, and Cyclone Sidr in November, which devastated rice and other crops.
The Bangladeshi government announced Monday it would import 400,000 tons of rice from India by the end of May to sell below cost on the open market in a bid to ease the rocketing price.
This purchase would boost the total amount of subsidized rice available at government-run shops to 120,000 tons in April -- nearly triple what had been on offer before, Food Secretary Molla Wahiduzzaman said.
Government outlets sell rice at 25 taka a kilogram, around 40 percent less than the market rate.
Rice price in the world's two leading rice producers, Thailand and Vietnam, are expected to surge after India's ban on exports of non-basmati rice.
On Monday, India, which normally exports 4 million tons annually, imposed a ban on non-basmati rice exports to ensure the country have enough rice to feed its more than 1 billion people and to ease pressure on domestic prices, which have pushed wholesale inflation to a 14-month high.
Traders said the ban might trigger a scramble among rice importers struggling to secure supplies and control prices.
Thailand's Deputy Prime Minister and Commerce Minister Mingkwan Saengsuwan has projected the export prices of the Thai jasmine rice would double, reaching 968 US dollars per ton in the next quarter from the 484 dollars per ton at the moment.
Some Thai officials and experts have warned that the biggest rice exporter could face a domestic rice shortage itself after skyrocketing prices on overseas markets have encouraged traders to increase export volume.
However, the government has floated the suggestions to control rice export, saying the official stockpile of 2.1 million tons is sufficient for domestic consumption. "It is simply a matter of demand and supply that has caused some shortage and rising prices during this period," Thai Prime Minister Samak Sundaravej said Friday.
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