Press, rice crisis : “Asian states feel rice pinch”

A very interesting article published by BBC, with some… striking charts.

Asian countries have been struggling to cope as the cost of rice has reached record levels.

The price of the staple crop has risen by as much as 70% during the last year, according to the UN Food and Agriculture Organisation (FAO). (BBC)

[my own chart for thai exports, here)]

5 Responses to “Press, rice crisis : “Asian states feel rice pinch””


  1. 1 fall 7 April 2008 at 8:41 am

    I am betting if we couple that rice price chart with corn price and bio-diesel production. There would be correlation.

    Simple economics and substitution effect. More demand, less supply(or substitute), higher price.

  2. 2 thaicrisis 7 April 2008 at 11:38 am

    Indeed.

    This is why it’s pointless to accuse -only- the “speculators”, the traders who hoard rice, the “foreign traders” etc… Like many politicians do.

    It’s easy to see that production-consumption is currently ultra tight for some countries.

    It explains why some countries decided a ban or quotas on their exports.

    This is putting more pressure on the market.

    And this is why, now, Thailand can not, I repeat can not, decide a ban or quota on exports. Such a decision would send panic waves everywhere, because Thailand is the producer number 1.

  3. 3 Fonzi 7 April 2008 at 5:32 pm

    TC-

    I absolutely agree.

    The entire world will be looking at Thailand’s rice policy carefully.

    I have no doubt the politicians will screw it up.

    Maybe it is a good time to start investing in rice futures.

  4. 4 thaicrisis 7 April 2008 at 7:12 pm

    … or in some rice fields. 😉

    Anyway, this topic (agriculture/food market) is absolutly fascinating I think.

    I note that in this domain, we (most of the people) continue to use the same old patterns.

    Yes, there is the weather (bad crops), yes there is the “speculation”… But I don’t understand why we underestimate one important factor… we close our eyes, conveniently… POPULATION.

    While people are talking about the gender of angels… population in the world IS GROWING.

    More mouth to feed. I’m mean it’s easy to understand.

    We’ll need more rice. Period.

    And here it’s not like oil : history shows us that when economic growth declines (recession), demand for oil declines too (leading to a decrease of price)… For population and food… this rule just doesn’t apply. WE’LL NEED MORE RICE.

    No escape.

    It means more fields, more fertilizers, more water etc.

    And eventually… MORE PROBLEMS. 😉

  5. 5 kokothemonkey 7 April 2008 at 7:31 pm

    guns, farmers, rice, and suicide…who would have thought?

    Thai farmers guard rice harvests – 06 April 2008


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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.


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