Soaring rice prices a global danger, expert warns

By David Ljunggren

OTTAWA (Reuters) - The current spike in world rice prices could be devastating, even if it only lasts for a few months, and will leave African nations vulnerable to unrest, a top expert said on Tuesday.

Rice prices have tripled over the past year as stocks dwindle and major exporters curb shipments to keep domestic prices under control.

The price of Thai 100 percent B grade white rice -- considered the world's benchmark -- was quoted at $920 a tonne on Monday, just under its recent peak of $1,000.

"The impact of a spike in rice prices -- even let's say it only lasted a few months -- is something that could be devastating," said Robert Zeigler, director-general of the Philippines-based International Rice Research Institute.

"Let's not underestimate the gravity of this situation," he told an Ottawa conference on food prices.

The United Nations Food and Agriculture Organization said on Monday that, although world rice production was set to hit a record this year, increasing demand and restrictions on exports would keep prices high for the staple foodstuff.

"The prices that we see today I fear are going to be around for a while, maybe not $1,200 a tonne rice but much higher than $200 a tonne rice ... we haven't seen the impact yet of these high rice prices," said Zeigler.

Although food riots have already broken out in Haiti and other impoverished nations, worse unrest could follow.