The Rice Price Scare is Over — Let’s Learn the Lessons
Time to consider a strategic reserve for rice, the world’s most important grain.
Part of Thailand’s rice supply chain at work.
Photographer: Lauren DeCicca/Getty Images AsiaPacWheat and corn are the most actively traded grains in financial markets. But they can’t damage the global economy like rice. The staple for half the world is largely ignored by Wall Street, but it’s the one commodity that really matters for global food security.
For the last three years, Asia and African nations had been on the defensive: A dangerous mix of bad weather, protectionism and panic buying fueled an inflationary spike. Many feared worse was still to come — a full-blown crisis accompanied by violence. It didn’t come to pass, though, and now that the weather is starting to improve, it's becoming clear the rice price scare is all but over. Food inflation, particularly in Asia, is starting to ease.