The New Nation - Internet Edition

IT is the staple food of half of humanity but only a handful of countries have large rice surpluses, leaving even some of the biggest producers scrambling to grow enough to feed their own people. Countries like Bangladesh, India, Myanmar, Thailand, Vietnam and Cambodia are all blessed with broad riverine deltas and plains with huge tracts suitable for rice cultivation and allot more than half of their arable land to it, according to the Manila-based International Rice Research Institute.

Just 35 million tonnes is traded in the world market, and because the volumes are so thin they are subject to price shocks. China is the world's largest producer and consumer and also has the highest yields, but is not a key player in the export market. 'China guards its rice reserve levels as a state secret'. China is also extremely concerned that their people have enough to eat, and so they are not going to export until they are sure they have enough. An unlucky confluence of events has pushed spot prices close to 1,000 dollars per tonne.

Adverse weather in Bangladesh, pests and disease in Vietnam and 'political problems' in Myanmar until the 1950s the world's top rice exporter have cut stocks usually available in the international market. Myanmar could be a big swing producer, but has great difficulty buying fertiliser in the world market because of the international trade embargo. While rice is not used to produce ethanol for biofuels, the diversion of other grains for biofuel affects the price and supply of other cereals.