Friday, March 28, 2008
Expect Higher Rice Prices
Those who've been watching the escalating cost of food had better ready themselves again: international rice prices have jumped 30 percent, according to the Financial Times. Egypt put into place a ban forbidding exporting rice. It's a big producer of the grain, but is keeping its production at home to help keep lower prices for its own consumers - following a trend:
The Egyptian export ban formalises a previously poorly enforced curb and follows similar restrictions imposed by Vietnam and India, the world’s second- and third-largest exporters. Cambodia, a small seller, also on Thursday announced an export ban.That will only exaccerbate a growing problem of food shortages worldwide and, sadly, riots as a result. Expect US producers to look for higher prices along with the rest of the market.
These foreign sales restrictions have removed about a third of the rice traded in the international market.
