Business, Finance & Economics

The high price of rice

(So we're hearing about a 30% increase in one day, why?) it's related to all the other commodity price increases around the globe, increases in wheat, corn or maize. These are really staple foods of the poor people and there's nothing to replace them so they go with each other. (What will the impact be on people's ability to feed themselves?) the world's poorest people rely on rice, they'll typically spend 30-50% of their daily income on rice so the effect is huge. (Governments are now protecting their domestic supplies, but how worried should they be about unrest and widespread shortages?) they should be worried. Historically famine is what triggers the fall of governments around the world. (With rising prices of rice and grains, will new populations be at risk for hunger?) Probably so, in places like Latin America, especially in Africa. Generally what happens, the first thing to go is the transportation network. With that we'll see huge increases. (Talk about a place where you've visited where you think this price increase is going to affect people on a daily basis?) I was in Kenya a year ago and came back hopeful, saying this is a country that is on the right path for development and were relying on traditional farming methods. That all fell apart in a week after their elections. (Are their solutions which can address this problem or is it a long term trend?) The long term trend was much flatter, so something is happening. A tipping point is being reached. Some things can offset it, but they could increase global warming so the feedback loops in this system are enormous too.

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