News Rice Shortage Felt Around The World

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Major retailers are beginning to ration rice due to a shortage stemming from droughts in Australia and supply restrictions from key rice-exporting countries, impacting global markets including the U.S. Despite reports of a rice shortage, some argue that the actual shortage is more pronounced in Asia than in the U.S. The situation is compounded by past government policies, such as payments to farmers not to grow rice, which some believe have contributed to the current crisis. The rising food prices are also linked to the diversion of agricultural production towards biofuels, as mandated by the Energy Independence and Security Act of 2007. Concerns have been raised about the impact of high fuel costs on farmers, who are struggling to maintain production levels. The discussion highlights a call for less government intervention in agricultural markets and critiques of foreign aid spending, suggesting that these factors exacerbate domestic food supply issues.
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Some major retailers have even begun to ration rice, NBC Correspondent Noelle Walker reported. Experts said a shortage in Asia and a drought in Australia are beginning to affect other parts of the world, including the United States.

Some of the largest rice exporters have restricted exports.

I noticed this at Sam's club yesterday.

http://www.nbc4.com/news/15967392/detail.html

Yet apparently the U.S. paid farmers not to grow rice last year.

Imagine, then, that our federal government paid hundreds of millions of dollars in 2006 to keep farmers from growing rice -- $218 million in Arkansas alone, according to this story.

http://blog.seattlepi.nwsource.com/environment/archives/137608.asp?from=blog_last3

I guess now the issue is whether we did not see this coming or we did not see the speculation coming.

The whole rice issue comes along with a rapid rise in food prices in general:confused:
 
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edward said:
I guess now the issue is whether we did not see this coming or we did not see the speculation coming.:confused:
It's great news, we pay $200M to farmers not to grow rice, creating a shortage - which boosts prices which makes farmers an extra $200M - thus saving tax payers from paying them even more.
 
I wouldn't have thought about it like that. I know I heard about it yesterday when I was listening to the news at work. I also loved how they mentioned there was a rice shortage, but afterward mentioned that it was a shortage in Asian nations, not here in the U.S. However, people aren't going to focus on that, they will focus on the fact there is a shortage, nothing else.
 
misskitty said:
I wouldn't have thought about it like that. I know I heard about it yesterday when I was listening to the news at work. I also loved how they mentioned there was a rice shortage, but afterward mentioned that it was a shortage in Asian nations, not here in the U.S. However, people aren't going to focus on that, they will focus on the fact there is a shortage, nothing else.
There is no rice shortage anywhere.
 
Where do these rumors start? Maybe someone overheard another in a mens bathroom at some bar in Shanghai and bingo! Mass hysteria and panic about a shortage that doesn't exist!
 
drankin said:
Where do these rumors start? Maybe someone overheard another in a mens bathroom at some bar in Shanghai and bingo! Mass hysteria and panic about a shortage that doesn't exist!

Where do you get your information from? Are you at every rice farm and market around the world simultaneously? If not I'd like to at least see some sources. Most of these issues are real and should never be taken in light of.
 
djeitnstine said:
Where do you get your information from? Are you at every rice farm and market around the world simultaneously? If not I'd like to at least see some sources. Most of these issues are real and should never be taken in light of.

The local Asian restraunt where I had lunch today. They didn't skimp on the rice.
 
edward said:
I guess now the issue is whether we did not see this coming or we did not see the speculation coming.

But we did see this coming.

One of the triggers for this was the diversion of food production to biofuel production. The
Energy Independence and Security Act of 2007 mandates an increase of almost an order of magnitude in the use of biofuels. During debate, this exact point was brought up, and it was pooh-poohed as the propaganda of Big Oil.

Just because a Republican says it doesn't make it wrong.
 
mgb_phys said:
It's great news, we pay $200M to farmers not to grow rice, creating a shortage - which boosts prices which makes farmers an extra $200M - thus saving tax payers from paying them even more.


It isn't the farmers making the money, though. Have you noticed the price of diesel is well over $4.00 a gallon in some areas? The farmers are having to raise prices just to keep up with the high demand and high fuel costs to farm the food. In addition to that, more farm space is being allocated by the industry to accommodate the increasing use of biofuels. That will equal lower supply of rice, and that should equal higher prices, not rationing.

I think it's high time the government stop sticking their noses into every industry and let the free market do its job. It would also help Americans a lot more if the politicians would quit using our hard earned money they politely borrow every year and spending it on third world countries. Almost every problem Americans are facing now are either directly or indirectly involved with our interventionist foreign policy.
 

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