“Millions are reeling . . . and governments are scrambling to staunch a fast- moving crisis before it spins out of control. From Mexico to Pakistan, protests have turned violent.” Time attributed events to booming demand from newly affluent Chinese and Indian consumers, freak weather events that had reduced harvests, the spike in oil prices, and growth in the production of farm biofuels.
In early 2007, thousands of Mexicans turned out on the streets in protest over the “tortilla crisis”— savage increases in the cost of maize flour. Over the ensuing months food riots or public unrest over food prices were reported by media in Haiti, Malaysia, Indonesia, the Philippines, Bangladesh, India, Burkina Faso, Senegal, Cameroon, Morocco, Mauritania, Somalia, Ethiopia, Madagascar, Kenya, Egypt, Ivory Coast, Yemen, the United Arab Emirates, Mexico, and Zimbabwe. In Haiti riots forced the resignation of the prime minister and obliged the United Nations World Food Programme to provide emergency aid to 2.3 million people. The new government of Nepal tottered. Mexico announced plans to freeze the prices of 150 staple foods. The U.K. Guardian reported riots in fifteen countries; the New York Times and the World Bank both said thirty. The FAO declared that thirty- seven countries faced food crises due to conflict or disaster at the start of 2008, adding that 1.5 billion people living in degraded lands were at risk of starvation. The Economist magazine succinctly labeled it a “silent tsunami.”
The rhetoric reflected the sudden, adventitious nature of the crisis. “It is an apocalyptic warning,” pronounced Tim Costello, the Australian head of the aid agency World Vision. “Until recently we had plenty of food: the question was distribution. The truth is because of rising oil prices, global warming and the loss of arable land, all countries that can produce food now desperately need to produce more.”
“What we are witnessing is not a natural disaster— a silent tsunami or a perfect storm. It is a man- made catastrophe,” the World Bank group president Robert Zoellick advised the G8 leaders feasting in Japan. Major rice- growing countries, including India, Vietnam, China, and Cambodia, imposed export restrictions to curb rice price inflation at home. Malaysia, Singapore, Sri Lanka, and the Philippines began stockpiling grain while Pakistan and Rus sia raised wheat export taxes and Brazil, Indonesia, and Argentina imposed export restrictions. Guinea banned all food exports.
The panic reached a peak in Asia, where rice prices soared by almost 150 percent in barely a year. “Nobody has ever seen such a jump in the price of rice,” said sixty- eight- year- old Kwanchai Gomez, the executive director of the Thai Rice Foundation. Filipino fast- food outlets voluntarily reduced customer portions by half. In Thailand, thieves secretly stripped rice paddies by night to make a fast profit. India banned the export of all non- basmati rice, and Vietnam embargoed rice exports, period, sending Thai rice prices spiraling upward by 30 percent. The giant U.S. retailer Wal- Mart rationed rice sales to customers of its Sam’s Club chain; some British retailers did likewise. Such mea sures did little to quell the panic, which was originally touched off by a 50 percent drop in surplus rice stocks over the previous seven years. The International Rice Research Institute attributed the crisis to loss of land to industrialization and city sprawl, the growing demand for meat in China and India, and floods or bad weather in Indonesia, Bangladesh, Vietnam, China, and Burma.