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| Rice Price Increase Hits Burma |
| Wednesday, 2 April 2008 |
Soaring rice prices across Asia have hit Burma as well, with sources in Rangoon reporting price hikes of nearly 14 percent over the past week, from 22,000 kyat to 25,000 kyat (US $19.80-$22.50) for a 38 kg bag.
Despite the drastic increase, however, observers say there is no immediate fear of a crisis, as most of the rice consumed in Burma is produced domestically.
“There was a big rise in the price of rice this week, but I don’t see a big impact at the moment,” said a businessman who spoke to The Irrawaddy on Tuesday.
“There should not be a rice shortage in Burma, because the authorities know that rice is a strategic commodity,” said Rangoon-based economist Khin Maung Nyo. He added: “This is a very sensitive issue for everyone.”
He cited the increasing use of bio-fuels as one possible cause of the soaring price of rice in Asia, at a time when many experts are debating whether the use of agricultural products as sources of alternative energy could have a negative impact on food supplies.
By the end of March, rice prices had risen 50 percent over a period of two months; since 2004, they have more than doubled. Experts blame the rising price of fuel and fertilizer, as well as disease, pests and climate change. There are concerns that prices could rise a further 40 percent in coming months.
The World Bank warned in a press release on Tuesday that food and fuel prices that have soared in recent years have become a pressing problem for governments in Asia. Since 2003, oil and many other commodity prices have doubled or tripled.
“While the subprime crisis will have its impacts—possibly on some countries more than others—the more immediate concern is that in virtually every East Asian country, inflation is climbing to uncomfortable levels,” Jim Adams, vice president of the World Bank’s East Asia and the Pacific region, said in the press release.
Higher fuel costs, with crude soaring above US $100 a barrel and threatening to stay that way, have been a major factor in the crisis, making fertilizer more expensive and increasing transport costs.
In Southeast Asia, disease, pests and an unparalleled 45-day cold snap that extended from China to Vietnam in January and February have also hurt harvests. Flooding in the Philippines and Vietnam has added to the growing crisis.
Medium-grade rice exported from Thailand, the world’s biggest rice exporter, reached $760 a metric ton, up from $360 a ton at the end of last year. Meanwhile, governments of rice importing countries, such as the Philippines and Indonesia, are expressing concern that rising prices could spark unrest.
*irrawaddy.org |
posted by moderator
Copyright, respective author or news agency
 04:29   |
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"who put family second to country, who for her convictions made an unbearable choice — not to see her sons grow and not to be with her husband as he lost his life to a long and painful cancer. Suu Kyi, with an idea too big for any jail and a spirit too strong for any army, changes our view — as only real heroes can — of what we believe to be possible.",BONO
