Hong Kong - The Hong Kong government Tuesday tried to put a stop to panic-buying of rice in the city of 6.9 million as fears mounted over escalating prices and a global rice shortage. Shop shelves were being cleared of rice stocks as Hong Kong people reacted to news that the price of rice imported from Thailand had shot up by almost a third in the past week.
Ninety per cent of the rice sold in Hong Kong comes from Thailand and importers say that even before last week's price increases, the cost of Thai rice has gone up by more than 20 per cent to over 900 US dollars a ton.
Responding to the panic-buying, the Hong Kong government issued a statement Tuesday saying: "There is sufficient supply of rice in Hong Kong. There is no need for the public to worry."
A spokesman for the Trade and Industry Department said in a prepared statement that more rice had been imported in the first quarter of 2008 than in the corresponding quarter last year so supplies were healthy.
He added that the Hong Kong government insisted on a reserve stock of rice that would last the territory at least 15 days in an emergency if the run on rice continued.
"We understand the recent price increase in Thai rice is mainly attributable to exchange rate changes and a global shortage of rice," the spokesman said.
"The department will continue to closely liaise with the trade and monitor the situation."
The reassurance appeared to do little to dampen public concerns about the rice supply, however, with shops reporting continuing brisk sales in rice Tuesday morning.
Food prices in Hong Kong generally have risen sharply in recent months, partly affected by a harsh winter and steep inflation in neighbouring southern China which supplies much of Hong Kong's pork, eggs and vegetables.
