Soaring rice price sows the seed of social unrest in Asia

An article in the current issue of Economist commenting the political consequence in Asia as a result of soaring rice price is worth reading. Rice is the staple diet in most Asian countries. Unlike those OCED members, food prices constitute a major portion of the CPI in poor nations. Soaring food prices mean a great blow to the livelihood of those impoverished - the majority of the population in poor nations.

The recent rocketing rise in food prices can be attributed to various reasons. The great demand for bio fuel implies that an increasing acreage of farmlands have been used for planting crops for the purpose of alcoholic fermentation. The consequence is the limited availability of farmlands for the plantation of food crops. Expanding middle classes in rising powers such as China and India spur the growth of demand for imported food and this contributes to the rise in food prices.

Rapid industrialization in Asian countries in recent years has drawn labour from farming to industries. Farmlands have been surrendered for urbanization in the process of economic development. Tainted water and pollution are also the culprit of poor crop yield.

Apart from the above mentioned causes, the rice import tariffs ,intended to protect the poor rice farmers in some Asian countries, now limit the rice supply and hurt the majority of rice eaters in the nation .

The soaring prices of rice and other commodities push up the CPI of poor Asian countries. A nation full of hungry people is prone to any political unrest. A new green revolution is desperately needed for those nations or revolutions of the blood-stained variety will come for sure.