Rising Grain Prices Panic Developing World  

The Washington Post has more on rising grain prices and the impact on the developing world - apparently cases of rice hoarding are starting to be seen in Hong Kong. Biofuels get part of the blame, though rising fuel, fertiliser and pesticide prices don't get a mention. Meanwhile, the price of corn has hit US$6 per bushel - a new record.

A spike in the price of rice and other food staples is triggering consumer panic, including food riots in Yemen and Morocco, and hoarding in Hong Kong.

Governments around the world have taken radical measures in recent weeks to control their countries' supplies of rice. Egypt last week said it would ban all rice exports for six months. Cambodia has stopped all private-sector exports of rice, and India and Vietnam also have imposed restrictions.

The price of grains -- corn, wheat, and rice -- has been rising since 2005 under pressure from farmers who would rather plant crops for biofuels than for food, the lack of technological breakthroughs in crop yields, and drought and disease. The sharpest increase has been this year, with the price of Thai rice, a world benchmark, nearly doubling since January, to $760 per metric ton. Some analysts expect that price to reach $1,000 in the next three months.

Tang Min, a former chief economist for the Asian Development Bank, said the price increase is the inevitable consequence of supply and demand. "The world population is increasing, but the increase in the planting of rice has not been as fast," he said.