Rice shortage fear

Citizens of Hong Kong were flocking to supermarkets to stock rice after a significant increase of rice price when global production of the agricultural product had dropped.
The fear of shortage still existed despite assurance of stable supply by high ranking Chinese and Hong Kong government officials.
A housewife surnamed Yu travelled by 45 minutes from her home in Aberdeen to a Wan Chai supermarket to buy rice.
“Rice is out of stock in the supermarket near my home. I need to buy a pack of rice, otherwise my family will not have rice to eat,” she said.
Another housewife surnamed Chan also expressed similar fear. “Rice will not be available in the future,” she said.
Rice production in Southeast Asia has dropped because of global climate change, rice traders said.
India and Vietnam, the world’s major rice exporters, have announced measures to reduce rice exports to ensure stable domestic supply and curb inflation.
Rice importing countries turned to other suppliers. Thailand has been exporting more than 1 million tons of rice, which is 30 percent more than normal volume, over the past five months.
But the price of Thailand rice, which accounted for 90 percent of Hong Kong consumption, has increased from US$420 per ton to US$750 per ton.
“There are many speculators stocking rice products for their own personal gains. There are people not involved in the rice business keeping stock in their backyard,” said Thai Rice Exporters Association president Chookiat Ophaswongse in a phone interview.
Ophaswongse indicated that Thai government might implement measures to reduce rice exports to ensure supply to meet domestic demand.
Chinese premier Wen Jiabao told journalists during his visit to Laos that China had between 40 million and 50 million tons of rice reserve, which enable sufficient supply of rice and other agricultural products to Hong Kong and Macau.
Hong Kong Secretary for Commerce and Economic Development Frederick Ma also urged the public not to panic.
Hong Kong Trade and Industry Department statistics showed that the city had rice reserve of 14,400 tons, which will be sufficient for 15 days of consumption. The department also said 92,400 tons of rice will be imported to Hong Kong between April and June.
Supermarkets in Hong Kong attempted to allay fears of rice shortage, saying supply would be sufficient but also added that they were under pressure to increase retail price.
Hong Kong Federation of Restaurants and Related Trades president Ng Tak-leung expressed fear that speculators might stock more rice products after witnessing the public panic.