World Food Crisis, Rising Prices, Rationing in the US?

The impact of the world food shortages and price crisis are slowly beginning to hit home here in the US it seems.  After consistent reporting in the NYT Editorials (and here) news features in other papers, recent periodical features like the one in TIME Magazine and in the past few days, actual reporting of this crisis on local US news channels, seems to be bringing the reality closer to home.  Just today it was reported that the large warehouse, bulk shopping stores: Sam’s Club and Costco have put limits by rationing the number of bags of rice (imported) each customer can purchase.  Just last week where I usually bought ‘Buy one 10lb. bag of Basmati Rice, Get One Free’, no longer was giving the 2nd bag away for free.  Ouch. 

Ears of wheat growing in a field

Photograph: Steve Satushek/Getty Images

I never think of rice or grain shortage as a reality anyone in the US would ever have to face.  Food doesn’t run out or get rationed here.  We’ve had our fuel shortages of course, but nothing like this.  Many of us are noticing how much more food is costing these days.  Just do a survey of your weekly grocery bill and observe. At least a 10-20% increase in certain food purchases.  Add the near $4/gallon of gas price to that and even the upper middle class is feeling the pinch.

What is happening around the world is far more brutal.  Hundreds of millions are going to bed hungry.  And millions are unable to afford to buy the scarce staples of rice or wheat priced beyond their means.  Riots and killings are widespread in countries which never had to deal with severe food shortages and exponential price increases.  In many countries like Vietnam, Nigeria, Ukraine, and Haiti, food accounts for half if not more of a family’s income spending. The lack of purchasing power coupled with food shortage related price hikes is wreaking havoc in dozens of countries around the world currently.

Why this crisis?  There are many reasons and also some very sound arguments for this question.  The high cost of oil is fueling higher production costs for farmers in grain exporting countries to produce their crops, thus raising the price of the commodities.  Due to droughts in large exporting countries like Austrailia, they have had a wheat shortage which has hiked up prices and reduced their wheat exports.  Another promoter of the current shortages and pricing crisis of wheat, rice and other staple commodities is the fact that subsidies have been given to farmers who convert their crops into biofuels like ethanol made from corn and other grains, outplacing land for grain and rice crops. 

Here is another good analysis of the current food crisis and the reasons why the world is in such a vulnerable state.

 

Tomorrow I think I may need to go and buy a couple of bags of rice…

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