:. Food Industry News


Rice Prices May Spike Again as Demand Rises-IRRI

Source: Reuters
30/10/2008

Manila, Oct 30 - Rice prices, which have nearly halved from record levels earlier this year, could easily spike again as the global economic downturn increases consumption, an industry expert said on Thursday.

Daily News Alerts

Job layoffs and poor incomes will increase demand for rice because people who have less money to spend will turn to less expensive foods like rice, a staple for nearly half of the world's 6.6 billion population, Robert Zeigler, director general of the International Rice Research Institute (IRRI), said.

There is always a risk that the rice price crisis seen this year could see a replay in 2009, said Zeigler of the Philippines-based institute.

"When rice drops down to $600-700 a tonne, we shouldn't think the crisis is over. It's still very, very real to the people who have to pay that to survive," he told Reuters.

Benchmark Thai rice fell under $600 a tonne this week for the first time in seven months amid thin demand. The price nearly tripled to a record $1,080 a tonne in April as big producers like Vietnam and India curbed exports to secure domestic supply.

Even at current levels, rice prices are still about double the $300 a tonne seen in 2007 and Zeigler said it is unlikely that prices will fall below that.

"I don't think we will ever see prices down at $200 a tonne again, those days are gone forever."

And it doesn't help that the major rice producers impose export curbs because that only "exacerbates the situation and causes panic," he said.

Zeigler said the ongoing credit crisis would also make it difficult for governments to invest in agricultural infrastructure which is key to boosting production in the long term.

"We saw those investments were curtailed after the 1997 (Asian) financial crash so I think there's reason to be concerned about that."

Last week Southeast Asian nations supported an IRRI-proposed action plan meant to boost yields and encourage use of new technology among farmers in the region to increase production.

The institute, which breeds high-yielding strains of rice to meet rising demand, kick-started the Green Revolution in the 1970s, helping multiply harvests in Asia and enabling major producers such as China, India and Thailand to industrialise.



GO   View more articles on this subject


More Alerts from 30/10/2008


Email This Article To A Colleague     Print A Copy Of This Page
 
 
 
 
FLEXNEWS - Business News for the Food Industry

About Us | Contact Us | Terms & Conditions | Privacy Policy
 
Daily News Alerts
Related Items
US Rice Falls Hard on Big Crop Outlook
Soaring Rice Prices a Global Danger, Expert Warns
Strong Signs of Record Rice Production - FAO
Rice Prices to Remain Firm over Next 3 Months - Olam...
Rice Prices Peaked, Could Fall to $600 - Ebro Puleva
IGC Sees Rice Prices Falling Later this Year
Tight Global Supplies to Keep Rice on the Boil
World Rice Output Seen Up 1.8 pct Year on Year in 2008...
Rice Prices May Rise Further in 2Q as Supply Shrinks...
India Rice Export Curbs to Boost World Prices

More in Food Industry News
EU Clears France's Diester to Buy Belgium's Oleon
Wal-Mart Dec Sales Disappoint, Cuts Forecast
Dollar Extends Losses vs Yen After Wal-Mart Sales
Campbell Soup Company Makes the Grade by Further Reducing...
USA: YoCream Announces Record Fiscal Year Sales and...
Inter Weichert Appeals against EU Commission Banana...
Opening of First U.S. Food and Drug Administration...
Upbeat Sainsbury Estimates it will Create up to 4,000...
Rwanda Expects Leap in Coffee Output, Income
Austria Retail Food Sector Annual Report 2008

Top Headlines
EU Clears France's Diester to Buy Belgium's Oleon
Wal-Mart Dec Sales Disappoint, Cuts Forecast
Dollar Extends Losses vs Yen After Wal-Mart Sales
In Situ Preparation of Whey Protein Micelles
Aroma-Producing Compositions for Foods
Modified Plant Gums for Preparations of Active Ingredients
Beverage Additive and Method of Making the Same
Nutritious Fabricated Snack Products
Temporally Meal Menu For Infants
Seven & I Posts 7.9 pct Q3 Profit Growth
Modified Vegetable Protein Having Low Levels of Phytic...
Inter Weichert Appeals against EU Commission Banana...
Process for Producing Sugars from Cellulosic Biomass
Opening of First U.S. Food and Drug Administration...
Upbeat Sainsbury Estimates it will Create up to 4,000...
Austria Retail Food Sector Annual Report 2008
Salmonella Outbreak Sickens 388 Across US: CDC
Sainsbury Q3 Sales at Top End of Forecasts
U.S. Food Prices Rise 7 pct in 2008 - Farm Group
Supervalu Profit Beats View, Cuts Costs; Shares Up
Thorntons Says Xmas Sales 2.3 pct Lower
China Marine Food Group Commences Production at New...
Wessanen Starts Buyout Process of Remaining Shares...
UK Shoppers Shifted Record Spending to Online Delivery...
Constellation Brands Reports Q3 Fiscal 2009 Results


 


FLEXNEWS 2008 - All rights reserved
ISSN 1950-6228