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The 2008 rice shortage was caused by reduced exports from Asian nations, a prolonged drought in Australia, land conversion, and rising demand for rice. The shortage led to higher prices and food insecurity, which can cause political and social instability.
Several factors contributed to the 2008 rice shortage, ranging from reduced rice exports from many Asian nations to a prolonged drought in Australia. All of these factors played out in the bigger picture of rising food prices in 2007 and 2008, and the impact of the shortage has been felt in various ways around the world.
One of the main causes of the rice shortage has been climatic conditions. In Australia, a major rice producer, a prolonged drought has led to a drastically reduced harvest. In many parts of Asia, floods destroyed rice fields before the grain could be harvested, further reducing the harvest. These conditions have impacted the availability of many specialty types of rice, particularly long-grain varieties, which tend to be extremely popular.
Land conversion also played a role in the rice shortage. In many Asian nations, farms are being displaced by growing cities, thanks to an ever-expanding human population. Farmers are also being encouraged to plant highly profitable export crops, such as corn and soybeans, reducing the amount of land available to grow rice. The decision to grow crops for conversion into fuel and animal fodder also played a part.
In Asian nations, rice is a staple, and growing demand for rice began to put severe pressure on domestic agriculture in 2007 in many Asian countries. As rice stocks began to dwindle, some countries such as Thailand restricted exports, to ensure there was enough rice to feed the citizens, and rice prices soared in these nations in response to the perceived shortage. As a result, some people have been given the total price of rice, a major problem in areas where rice can play a huge role in the diet.
Outside of Asia, people started feeling the shortage of rice in 2008 in the form of reduced availability of some special Asian rice varieties, such as basmati. Indeed, there was no shortage of short-grain rice varieties, thanks to the large plantations in California and the Southern United States, but many consumers prefer long-grain rice, for cultural, ethnic or culinary reasons. As a result, long grain rice prices have risen in response to consumer demand.
While the limited supply of some rice varieties and generally high rice prices were certainly a cause for concern, the bigger problem has been the general rise in food prices. 2007 and 2008 saw dramatic increases in global food prices across the board, not just a shortage of rice, increasing food insecurity for people around the world. Food shortages also tend to lead to political and social instability, creating the potential for food riots and other civil unrest in nations with large impoverished populations, such as Haiti.
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