Since the fall, large producers such as Vietnam, India and Egypt have banned or limited rice exports to keep a lid on domestic food prices. China, another major producer, has taxed rice exports.
But there is no dearth of rice in the United States. The Department of Agriculture projects U.S. rice supplies this year will be 8.3 million tons, nearly unchanged for the last seven years. Because Americans consume just 10% to 15% of what people in Asia's big rice-eating nations eat, there's plenty for domestic use, said Nathan Childs, a USDA market analyst. Rice consumption in the U.S. is so low that as much as half of the domestic crop is exported.
Most rice is eaten within 100 miles of where it is grown. Just 8% of world production actually trades internationally, Childs said. So these new export limits and taxes have had an outsize effect on prices, he said.
That's made for a rough time for Thomas Chan, manager of the ABC Cafe in Monterey Park. At least 70% of his customers order rice.
The cafe now purchases 100 large bags of rice each month as backup, Chan said. "Without a steady supply, what do we have to give to customers?"
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jerry.hirsch@latimes.com
tiffany.hsu@latimes.com
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A food that sustains half the world
Soaring prices for rice, a staple for more than half the world's population, are leading to shortages, government protection of domestic stocks and even political unrest in some poorer countries.
* Most of the 3 billion-plus people for whom rice is a staple are in Asia. But it is also an essential food in parts of Africa and the Caribbean.
* About 645 million tons of rice was grown in 114 countries in 2007. Rocketing prices have caused several countries to ban or restrict exports, as growing appetites in China and India, drought in Australia and pests in Vietnam add to fears that millions of people may be cut off.
* Thailand, which ships one-third of the world's rice exports, may follow its Asian neighbors in limiting sales. That would further tighten supplies and send prices higher.
* There's no shortage of rice in the United States. The nation exports as much as half of its crop each year.
* A member of the grass family, rice was first farmed about 10,000 years ago. Thought to be native to deltas around the Ganges, Yangtze, Tigris and Euphrates rivers, rice now grows on every continent except Antarctica. As well as being cooked, the grain is processed to make cakes, wine, flour and vinegar.
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Times research and Reuters
