The Factor Of Rice Crisis Of All

2356 words - 9 pages

Title of Paper: THE FACTOR OF RICE CRISIS OF ALLIntroductionIt's is one thing if you cannot find out the pork in your local market, you can always choose the other substitutes such as chicken or fish, But in Asia, "Rice" has no good substitute in Asia diets. It is playing the role of food in the Asia.In the past famines have been about local or regional shortages. Experts have told us that the problem is not a global lack of food but rather problems in distribution. Is it still true today? Unfortunately, it is not true today, the problem to be more complicated; you can find that form India to the Philippines, the price of Asia most vital food is increasing sharply, the world's price stocks has dipped to their lowest level in 25 years. The worse estimates are the global rice supply could slide to 70 million tons, less than half the 150 million-ton inventory in the year 2000. Indeed, just three months gone in 2008, the figures shows that global rice demand is estimated at 423 million tons or more than the current season's record harvest of 420 million tons, at the same time, the rice consumption nearly 424 million tons, according to the U.S. Department of Agriculture. (2008)WHAT IS DRIVING THIS CRISIS?According to the Peter Timmer (2008), it's important to start with the basic problem of the equilibrium between food supply and demand. China and India now are producing more rice than they consume, It is thanks to the development of hybrid super-seeds after the 1960s and 1970s Green Revolution.we have still seen predictable that increases in food supply over the past decade--significantly larger than population growth. So the problem must largely lie on the demand side.Peter Timmer, state that there are four basic drivers seem to be stimulating the rapid of growth in demand of food commodities(1) huge speculation from new financial players to search for better returns than in stocks or real estate, also stimulated by the declining US dollar; (2) the diversion of a huge chunk of America corn crop to ethanol production, which has boosted demand for other staples, including rice; (3) the rapid depreciation of the U.S. dollar against the Euro and a number of other important currencies, which drives up the price of commodities priced upward in U.S. dollars; and (4) Rising living standards in China, India, and other growing Asia developing countries, which increasing the demand livestock product and the feedstuffs to produce them.The diversion of a huge chunk of America corn crop to ethanol productionThe ethanol industry's growing demand for corn has pushed prices for the grain to their highest levels in a very short period, which has boosted demand for other staples, including rice;"The U.S. is now using more corn for production of ethanol than our entire crop in Canada," says Kurt Klein (2008), "It's huge." In 2000, world production of ethanol is 20 billion liters, in 2007, world production were rising to 60 billion liters. In the month of January 08,...

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