Why would rice prices be going up so high?

Question

I don't really care for rice but i know lots of people do.I just don't get what's so special about it that prices go up?

Answer 1

prices are going up on all commodities... milk, eggs, wheat... it is due to the rising costs of fuel, and the weak American dollar.

Answer 2

The prices are going up partly due to world-wide inflation.  

We now have a global economy where a lot of countries use the US dollar for international trade.  And a lot of countries have pegged the exchange rate of their currencies to the US dollar.

This means that when the US government (the Fed) decreases the interest rate for the US dollar.  It affects not just USA but the whole global economy too.  Low interest rates make it  risky to keep your money in cash due to possible losses from inflation.  And because of this risk, low interest rates encourage people to spend and invest their cash as quickly as they can in physical goods that don't loose their value from inflation.

People in many countries are now hoarding various things and commodities such as cars, motorcycles, grain, rice, oil, and gold.  This hoarding reduces supplies available on the market makes the prices go up.

But inflation and hoarding is only a part of the problem.  Another part is the growing population of the world and the increasing demand for everything as a result.  Every year, the world population grows by 80 million people.

And a third part is the growing prosperity in China and India.  These countries put together have more than 2 billion people.  And if 2 billion people all of a sudden can afford to drive cars and eat a lot of meat.  Then this in itself creates a shortage of rice and many other things.  

Raising animals for meat is a very inefficient way to produce food.  Because it takes three kilograms of grain to produce one kilogram of chicken, and seven kilograms of grain to produce one kilogram of beef.

http://findarticles.com/p/articles/mi_qa...

Answer 3

part of it is gas prices. the other part is not enough grain in the world

Answer 4

there is a lot of reasons for the rice increasing price.

One reason there are different types and when alot people buy those they had to increase the prices and also there is shortage rice. china have problem maintain rice plantation.

japense and chinese people live on white rice a the time.

The other resaon is rice type like wheat or grain are more expensive than white rice. japense rice prices are between wheat rice and white rice.

If they increase the white rice, other type of rice must also increase.

Answer 5

because there's a rice shortage.....

limited stocks means higher price....

=D

Answer 6

There's a food shortage across the world at the moment. Thus, grains are going up. And potash market is just BOOMING!

Answer 7

gasoline prices have gone up and thats what they use to deleiver food.so higher gasd prices equal higher food prices

Answer 8

Experts say rice prices are rising because of a mix of irrational panic, weather problems - typhoons in the Philippines, a cyclone in Bangladesh, flooding in Indonesia and Vietnam - and an overall reduction in the amount of land dedicated to rice farming. There are also strong suspicions of hoarding, something that the Thai commerce minister recently encouraged before reversing himself.

Thailand, which is by far the world's largest rice exporter, has become a focal point of the global rice market as other traditional exporting countries like Vietnam and India have halted or put restrictions on their exports in recent weeks to ensure sufficient domestic supplies.

But it is a measure of the relatively weak position of rice farmers that even in Thailand most farmers have not yet benefited from the increase in prices. Their farms are generally bigger and more modern than those in Laos and other remote parts of Asia, but their productivity is low. Perhaps most important, they have no way of storing their own rice. Most of them sell their crops immediately after the main harvest in November, when supply is ample and prices are usually lowest. The price of Thai white rice is 122 percent higher now than it was in November.

Answer 9

Well, sweetheart, the prices of EVERYTHING is going up. Except our pay rate. lol... :oP Unfortunately with the economy the way it is right now, there isnt much we can do about it.

Answer 10

Yeah, theres a shortage cuz we practically spoon feed it to other countries. "Oh, youre a starving nation? Here, have some rice, has hardly any nutrional value, will just make you feel full, and if you cook it like the chinese place up the street ul be hungry again in like 2 hours." LOL!!! Dont take all the government says to heart, sometimes i really do think theyre just out to get more money and rice is cheap to produce right. That makes me rethink what everyones gonna toss at us at our wedding...:) lol

Answer 11

It is not only rice, it is all grains. Hops, corn, soy, wheat -

Currently, Government subsidizes 51% per gallon of ethanol produced. That is mostly the reason our grain prices are going through the roof. Every one wants in on the government cash cow subsidies.... Grow corn, grow corn for ethanol.

We will keep on until we run ourselves aground because there won't be enough to go around.

Answer 12

Its easy to explain...Supply and demand...well since most of the world is in crises with the recession,pretty much exporting of goods and gas has either been limited or stopped...just think about it,if youre supply of youre goods in your country is low,would you still export it for the same price just to not break the friendship with other nation and let your people suffer?or take advantage of the high demand with a shortage of supply where you end up making triple profit with your natural resources...well people,better research first before confusing the curious ones.....

hope you understood my simple explanation...

Answer 13

Its all to do with  the economy.Basic essentials have shot up in price because of the high cost of petrol and transporting goods.Not just America, in Australia too.

Answer 14

Most of the above answers make sense, but I would be surprised if the United States has actually raised the price out of a humanitarian concern for Haiti and other rice-producing countries.

The price has actually been artificially low because of the subsidies for growing it here in the United States and other rice-producing countries. We pay farmers for crop damaged by floods, I think.

Answer 15

It is not only rice, it is all grains. Hops, corn, soy, wheat -

Currently, Government subsidizes 51% per gallon of ethanol produced. That is mostly the reason our grain prices are going through the roof. Every one wants in on the government cash cow subsidies.... Grow corn, grow corn for ethanol.

We will keep on until we run ourselves aground because there won't be enough to go around.

my resolved question:

http://answers.yahoo.com/question/index;...

Answer 16

Shortages and the fact that the US is flooding the market with cheap rice, so pressure from other countries (see, the recent crisis in Haiti), has caused us to reduce our supply, which should jack up the price and help the world's food market.

Answer 17

Bush has "F" up our economy so bad the exchange rate with the Chinese. The CHINESE !!! is to low for it to be profitable to sell to us. Their is no shortage it's just that we are force to pay higher prices to the Chinese to make it worth their while which naturally means retail prices go up and knowing people are only going to buy a minimum amount imports are cut back

Answer 18

Not to worry.  It is all politic.  Supply and Demand  If it $10/lb, I will be glad to pay for it.  The problem is availablity same goes with gas.

Answer 19

i think it was locusts i heard ate tons of farms,i think that is the reason for the prices to rise

Answer 20

The biggest production country is facing shortage and yet the demand is high. That makes the price go up. Micro Economy 101.

This does not apply to rice only. Anything in the world will have the same effect.

Just for an example, if this x*x cloth brand company over produced tons of new tops. They need to sell it at a low price in order to clear the stocks. Imagine if they are selling at a high price, chances are they can't clear the stocks. But if x*x produces only several top of the range tops. They can sell it at higher price in fact, people would be willing to offer higher price to buy them.

Answer 21

Just manufacture a shortgage.

Hence people will pay more.

Always if you follow money you'll know the answer.

Answer 22

Maybe the asian population is growing?

Answer 23

because americans keep callin Asians (who grow rice the most) Chinks, so they are upset now and arn't exporting anymore to the U.S.

Hit me up if you think otherwise....