April 25, 2008	Friday	Rabi-us-Sani 18, 1429

BANGKOK, April 24: Rice prices in Thailand, the world’s top exporter, surged to $1,000 a ton on Thursday, feeding concerns about food security after export curbs by governments worldwide.

The surging price of food and fuel has sparked riots in Africa and Haiti and raised fears that millions of the world’s poor will struggle to feed themselves. Some analysts, however, attribute much of the surge to panic buying by both consumers and governments rather than a dire shortage of supply.

After this week’s over 5 per cent jump, rice prices stand nearly three times higher than the start of the year. With no sign of the rally relenting, as traders expect more buyers to come into the market, government anxiety about social unrest from the soaring cost of Asia’s staple will deepen.

The crisis, starting with India’s imposition of export curbs to protect domestic supplies last year, was felt in the United States this week with a few major retailers saying they had started to notice signs of panic buying.

“Everywhere you see, there is some story about food shortages and hoarding and tightness of supplies,” said Neauman Coleman, an analyst and rice broker in Brinkley, Arkansas.

In Bangkok, some traders said Thai 100-per cent B grade white rice, the world’s benchmark, could hit $1,300 a ton due to unmet demand from number-one importer, the Philippines, which fell well short of filling a 500,000 ton tender last week.

There is also a big question mark over Iran and Indonesia, two countries that normally buy as much as 1 million tons of Thai rice each year but which have bought nothing so far in 2008 because of the soaring prices.

Even though some analysts say the price, part of a wider global rally in crop prices, is based on jittery governments rather than fundamentals, Thailand’s top exporters say the world is now set for an era of expensive food.

“Prices will remain firm for the rest of the year,” Chookiat Ophaswongse, head of the Rice Exporters Association in Bangkok, told Reuters.