Sunday, May 4, 2008

The rising price of food

I am attracted to the current issue that is faced by most of the population on earth, which is the rising price of food. Across the world, be it wheat or rice, the price of food is increasing at a dizzying rate However it is rice, which is the foundation of the Asian and also the symbol of its culture, that is causing the greatest anxiety. Most of Asian families spend more than half of their income to buy food, and the increasing price force them to reduce expenditure on other item (or even have to eat less food). The simple explaination given by economists is there is not enough rice in the market. But most people would ask, "where does the rice go?"I would say that this phenomena is the ugly consequences of globalisation. As a result of globalisation, every country is becoming more and more specialized in one industry and become more reliant on other countries for food. We can see that many developing countries in the world is focusing more on service industry rather than agriculture. Many leaders of those countries claimed that they do not reduce the production of food. But one vital point not to forget is the increasing number of the population. As the number of human increases at an increasing rate, the demand for food is also increasing. Countries such as Philippines and Bangladesh depend on imported rice to feed their large populations. However due to low supply of rice in, many exporting countries have resorted to limit their export. The importing countries then will face the problem of low supply of food and will have to increase the price of food to reduce the demand.However, people tend to forget that rice is the foundation of their population and there is no way people will stop buying rice. I could not see this problem to be solved in the near future if effort to increase the supply of rice in their own countries are not taken. In fact, I do not see they can increase the supply of food quickly enough due to other problem, such as the rising cost of petrol which will increase the cost of manufacturing food.

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