Cyclone fuels rice price increase

Rice prices have risen for the fourth consecutive day, as tight supplies are aggravated by the disaster in Burma's key rice-growing region, reported The BBC.

The cost of rice, the staple food for almost half the world's population, increased by 2.4% to $21.6 per 100lb on the Chicago Board of Trade.

Cyclone Nargis, which has killed tens of thousands of people, struck areas where 65% of Burma's rice is grown.

The disaster comes as rice and other food prices are already soaring.

The higher price of US long-grain rice in Chicago has been replicated around the world, with Thai and India rice also increasing sharply.

The cyclone hit the Irrawaddy delta and other key rice-growing areas in Burma.

The UN's Food and Agriculture Organisation (FAO) said the region had been due to export 600,000 tonnes of milled rice in 2008. However, it said secondary crops, normally harvested from April to June, could have been damaged by the cyclone, while rice already harvested might have suffered from poor storage.

The FAO said "localised food shortages" were possible, while exports could also be hit.