Image from al-Arab Online.
A few years ago, when I started eating a strict gluten-free diet, my grocery bill tripled. I was shocked at having to pay $6 for a loaf of bread, and began using a bread maker to try to cut costs. Gluten-eating friends and family were invariably horrified when I told them how much gluten-free bread cost.
Now at $37.52 a bag.
Yep. From $9 bucks a bag 142 days ago.
I’m pretty much freaking out.
She’s not alone. Wheat and rice prices are spiraling, causing a rising sense of panic. Business magazines have begun throwing around words like “famine” and “peak wheat.” Rice has hit a 20-year high, and many rice-exporting countries are instituting bans or caps on exports in the hopes of meeting domestic demand:
Vietnam’s government announced here on Friday that it would cut rice exports by nearly a quarter this year. The government hoped that keeping more rice inside the country would hold down prices.
The same day, India effectively banned the export of all but the most expensive grades of rice. Egypt announced on Thursday that it would impose a six-month ban on rice exports, starting April 1, and on Wednesday, Cambodia banned all rice exports except by government agencies. (New York Times)
Food prices are spiking everywhere: while US consumers are feeling the squeeze with an overall 8.9% increase, in Egypt, prices are up by 50%. Food riots have broken out in Guinea, Mauritania, Mexico, Morocco, Senegal, Uzbekistan and Yemen, according to the Times; the Globe and Mail adds Egypt and Cameroon to the list.
There are a number of reasons for the spike in prices. Read the rest of this entry »