Weather conditions, land conversion, and growing demand for rice in Asia contributed to the 2008 rice shortage, which led to rising prices and food insecurity worldwide. Shortages of certain specialty rice varieties were felt outside Asia, but the larger issue was the general rise in food prices.
Several factors contributed to the rice shortage in 2008, ranging from declining rice exports from many Asian countries to the prolonged drought in Australia. All of these factors occurred within the larger framework of the rise in food prices in 2007 and 2008, and the impact of the shortage was felt in many ways around the world.
One of the main causes of the rice shortage was weather 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 grains could be harvested, further reducing the harvest. These conditions have affected the availability of many special types of rice, especially the 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 encouraged to plant highly profitable export crops such as corn and soybeans, reducing the amount of space available for growing rice. The decision to grow crops for conversion to fuel and animal fodder also played a role.
In Asian countries, rice is one of the main staples, and the growing demand for rice began to put serious pressure on domestic agriculture in 2007 in many Asian countries. As rice stocks began to run low, some countries such as Thailand restricted exports to ensure there was enough rice to feed the citizens, and rice prices rose in these countries in response to the perceived shortage. As a result, some people have been priced out of rice entirely, a big problem in areas where rice can play a large role in the diet.
Outside Asia, people began to experience rice shortages in 2008 in the form of reduced availability of certain specialty Asian rice varieties, such as basmati. Indeed, there was no shortage of short-grain rice varieties, thanks to large plantations in California and the American South, 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 tight supplies of certain rice varieties and generally high rice prices were certainly a cause for concern, the bigger issue was the general rise in food prices. 2007 and 2008 saw a dramatic increase in global food prices in general, not just a shortage of rice, increasing food insecurity for people across the world. Food shortages also tend to lead to political and social instability, creating the potential for food riots and other civil unrest in countries with a large impoverished population, such as Haiti.
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