by Mak

Created on: October 06, 2008

Worldwide food prices are going up without following any mathematical or economic theory. According to Food and Agriculture Organization (FAO), world food price index rose by forty percent in 2007. In 2006 food price index rose by only nine percent comparing to that of the previous year. Trend of prices rise are still on in 2008.
Population of the whole world stunned with frenzied rise in food prices and trying their best to struck a balance between earning and food expenses. Governments are trying their best to help the people to cope up with rising food prices.

In South East Asian countries rice is the staple food. Along with other foods, prices of rice have gone up few folds in the last twelve months. Earlier this year some of the major rice producing countries like Thailand, Vietnam, etc. stopped rice export to stabilize their own country's food shortage problem. Effect was great on countries like Singapore, which imports about ninety percent of edibles, on the shelf prices in supermarkets shoot up rapidly to match with prices rise of the exporter countries.
Luxuries can be kept pending for good times but same not possible for food, either buy or starve. Rise in essential food prices are an additional financial burden on poor and middle income group of peoples. Increase in price of oil price will have secondary effect on common peoples but for rise in food price it is direct effect on day to day costs.

Countries like Singapore, government have done a lot to help their citizens. Schemes like growth dividend are a cash distribution given to the citizens in installments according to their earning. Another scheme of paying out cash to citizens is to goods and service tax. These are great helps for many, who are struggling hard to cope up with rising prices of food and other essential items. Some of the supermarkets like "Fair Price" trying to help their consumers by importing the staple food directly from the exporter country to eliminate the cost of middleman. The supermarket is studying plan to open up budget outlet for poor and needy people. "Fair Price", the biggest supermarket chain in Singapore' gives two percent rebate on purchases once in a week to the senior citizens.

In 2005 conceived idea by Thailand prime minister to form an Organization of Rice Exporting countries (OREC) similar to OPEC is becoming a reality now. Proposed five countries are Cambodia, Lao, Myanmar, Thailand and Vietnam. which believed to give more control on rice production, price fluctuation

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