Alex and I have recently posted on the WFP’s appeal for more funds as the price of food continues to rise. Last week the price of rice began to shoot upwards sparking fears of a major rice shortage in Asia. According to experts global rice stocks are at their lowest since 1976. However some commentators aren’t convinced and argue that despite the sharp increase the fundamental balance between supply and demand remains largely intact. But are their voices loud and frequent enough for prices to drop and calm to return.
Not at the moment… last week’s turbulence (trigged by Egypt and Cambodia which banned rice exports) saw rice stocks jump 30 per cent in international markets causing the Vietnamese Government to announced it would reduce rice exports this year to 3.5m tons, from a projection of between 4m and 4.5m tons. India meanwhile has raised its minimum export price to $1,000 (€635, £500) per ton, up from $650 per ton, in a bid to keep domestic prices low.
One possible consequence of this run on rice is an increase in social unrest (food riots have broken out in Egypt, Cameroon, and Burkina Faso in the past week) which has led donor organisations to ask for more funding to maintain food distribution programmes.
According to the WFP $50m would buy 189,000 tons of food last year in Afghanistan, which would feed 3.5m people. This year, the same amount would buy only 112,000 tons to feed 1.9m.
