Global rice reserves at lowest

Global rice reserves are at their lowest in 30 years and wholesale price of rice in Thailand has increased to $580 per tone in past three months.

Rice is one of the most important parts of daily diet in many Asian countries. People of China, Japan, India, Pakistan, Turkey and Iran are among those who at least consume rice once in a day.

The rising price of rice undoubtedly imposes hardship to many people in these countries.

Thailand and Vietnam are the first two largest exporters of rice in the world and the latest news indicate Vietnam, Cambodia and Indonesia have imposed restrictions on their rice exports to assure having enough rice for their domestic consumption.

Vietnam has reduced its rice exports, Cambodia has banned exports of rice altogether and Indonesia has levied a new tax on its rice exports.

Afzal Ali, an Asian Development Bank economist, predicts shortage of rice and its higher price could cause some social tensions and that is the main reason some Southeast Asian countries have imposes restrictions on rice exportation.

Social tensions can prove to be very dangerous, class tension destabilizes the countries and that is why Southeast Asian countries are so sensitive to the issue, he added.

The Philippines, with 58 million citizens, imports more than 2 million tons of rice annually and more than any other Southeast Asian nation is vulnerable.

The country does not have enough arable land to produce its own consumption needs and about 10 million of its population is suffering from hunger.