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Published on April 25, 2008

Achara Deboonme

achara_d@nationgroup.com

The Nation

Domestically, consumers are in a panic over the spiralling prices and they are starting to buy up extra rice. A family I know recently bought five 5-kilogram bags of jasmine rice, though there are only three persons under the roof.

 Even if they ate rice for all three meals a day, the rice could last for months. When the last bag is opened, they won't find moths but certainly the fragrance will be long gone. If they cook the rice but don't eat it all, the supply period could be shorter. But who would waste something so expensive?

 It's not surprising that Tesco Lotus said earlier that sales of bagged rice at its outlets have tripled so far this year. From The Nation's survey, many rice brands are disappearing from the shelves. If traders don't have problems in stocking new rice for sale (since farmers now hold higher bargaining power), it must be because they are hoarding their existing stocks for future gains.

 The panic buying has spread to overseas. WalMart Stores' Sam's Club warehouse unit in the US now limits purchases of some types of rice.

 Amid this tight situation, there is talk that some countries with extra rice supplies will ban exports.

 On Wednesday, James Adams, vice president of the World Bank's East Asia and Pacific Department, said there was concern that Thailand, the world's largest exporter, might restrict shipments, thus worsening the global food crisis. He is quoted as saying: "If a key exporter like this limits foreign sales, it would be very much like Saudi Arabia reducing oil exports."

 How can Thailand treat rice like oil? As if Adams knew that Thais would take offence at his comparison, he issued another statement yesterday.

 He praised Thailand as a "a responsible international trading partner, particularly in the rice trade. Thailand has even gone the extra mile to explore additional land for rice production. Noting Thailand's long and successful history as a rice exporter, I emphasised that we feel the government of Thailand was being responsible in resisting pressures to cut off exports and that there was, in our view, an adequate supply of rice to meet needs."

 Certainly, a Buddhist country like Thailand won't seek only profit when it comes to food. Thais are known for their kindness in treating visitors with meals. If rice were not a food item, Thailand would want to be like Saudi Arabia, which can hold back on oil production without having to feel guilty. The result would be only a few cars left parked at home - much less serious than scenes of starving people.