Rice Raises Issues
6 May 2008 Weather and policy continue to play key roles in the rice crisis, but the situation is showing signs of improvement, according to an article on AgLine News.
The first positive note was the drop of rice prices in Thailand by 10% last week after importers took their cue from Manila’s decision to scrap a large tender held back on purchases.
The article reports that five Thai exporters quoted prices for 100% B trade white rice, the world’s benchmark, at between US $900 and $920 a tonne, free on board. While high, that is down significantly from last week’s price of $990-$998 a tonne.
Also easing the situation, Thailand, the world’s largest rice exporter, backed off its proposal for an “OPEC-style” rice cartel. “If Thailand was going to set up a rice cartel to fix the price, that would worsen food security,” Foreign Minister Noppadon Pattama told reporters.
The Philippines, the world’s top rice importer, scrapped its largest rice tender of the year, while Vietnam, the world’s second-largest rice exporter, said it was considering imposing a duty on rice exports to save more of the grain for domestic consumption.
However, the fall in rice prices may prove short-lived if Myanmar, which has committed rice exports to neighbouring countries, halts overseas sales after being hit by the devastating Cyclone Nagris, which killed up to 22,500 people and tore through Myanmar’s Irrawaddy delta, its main rice growing area, once known as the “rice bowl of Asia”.
Some of Myanmar’s rice customers are expected to turn to Thailand for supplies after the cyclone.
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