Effects
While Japan, which produces enough rice for its domestic needs, maintained a constant pricing and no consumer concern, Countries in West Africa as well as the Philippines, dependent upon imports to provide the staple food of rice, were particularly hard hit by increasing prices. Growing panic over retail prices in the Philippines spread across Asia. "People panicked everywhere," according to economist Peter Timmer. "In Ho Chi Minh City, for heaven's sake, the center of the second-largest rice exporting surplus in the world, supermarkets and rice markets got cleaned out in two days."
On 15 April, the Philippines, the world's largest rice importer, urged China, Japan, and other key Asian nations, to convene an emergency meeting, especially taking issue with those countries' rice export bans. "Free trade should be flowing", Philippine Agriculture Secretary Arthur Yap stated. In late April 2008, the Philippines government requested that the World Bank exert pressure on rice exporting countries to end export restrictions.
Asian rice consumers and agricultural commodity traders around the world had been aware of the problem for months, but it garnered widespread attention in the United States in the week beginning April 21, 2008 when a Costco Wholesale Corporation store in San Francisco, California limited rice purchases to five 20-pound bags per customer. Later in the week, on April 23, the outlet reduced that number to two. Also on April 23, Wal-Mart division Sam's Club announced it would limit the sales of 20-lb. bags of long-grain rice to four per customer. Other sources stated that the limits were only placed on imported rice, and that non-imported medium- and short-grain rice remained in comparative abundance.
Also on April 23, "Thai shipments of rice" to a major Canadian rice wholesaler, Western Mills, Ltd. abruptly ceased:
- ""We've never seen anything like this in the history of this company," said Lawry Poupart, controller at the company, which supplies major chains including Safeway and Save-On-Foods. "Everybody is precariously watching what's happening in the world."
Read more about this topic: 2008 Global Rice Shortage
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