Rising rice prices and the rising cost of food worldwide, circa early 2008, have led to riots in developing nations. The first major effect in the United States was evident during the week of April 25, when American consumers were reported to be making bulk purchases of rice and other staples. Retailers including Wal-Mart's Sam's Club affiliate responded by limiting the number of 20-pound bags of rice available per customer, per day. The price of rice rose 50% from the last week of March through the second week in April.
Background:
Though the world is in the midst of a rice shortage, the United States is an exporter of the commodity, and actually has a surplus compared to per capita consumption. Global futures of rice have, however, risen to $0.25/lb, a record high. The price has risen as much as 75% in some markets, and is expected, as of April 25, 2008, to increase more in the near future. Nearly half the world's population relies on rice for its daily nourishment.
Global Warming Connection:
Many farmers worldwide are blaming warmer climates for their inability to produce large amounts of crops. Though Australia has experienced a drought that has stalled rice production, it is unclear whether global climate change can be considered the chief cause. Environmentalists argue that better farm and irrigation technology may help alleviate some of the stress currently placed on rice farmers.
Fast Facts:
- 2008: Rice production expected to decline by 3.5%
- The U.S. accounts for 12% of traded rice
- Rice accounts for 1/5th of all calories consumed worldwide
