Saturday, May 03, 2008

Rice Cries

Costco , Sams Club or any other home departmental stores are curtailing the number of rice bags sold to their customer. Rice in Demand. Yesterday, George Bush has stated that India is responsible for this rice crisis.

Being a predominantly rice eater from my birth, I am loyalist to a particular brand of rice. Likewise, across globe, I understand that people are loyal to their brand.

In India, with surging Inflation (which ofcourse, is a double emphasis) to 7.75 %, the government is restricting the export on rice and pulses. This in way makes these commodities available to domestic market. Ofcourse, with burgeoning population, it is difficult to meet the demand. However because of export curbs, there is an increase in supply. This is the basis for UPA to check on price rise.

Indian diaspora is responsible for introducing Indian brands of food and commodities to the globe. With the world whet its appetite to Indian brands, it becomes difficult to meet the supply at all the times.

What it means to India ? India can temporarily gain on exports by increasing the price but in the long run, India might lose to any other Rice producing country, if the same quality or superior quality is found.

What it means in Stock Market ? If rice is traded in futures and options, it will be an interesting watch.


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