HK residents stock up on rice in panic-buying
By Channel NewsAsia's Hong Kong Bureau Chief Roland Lim | Posted: 02 April 2008 2358 hrs

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HONG KONG : Hong Kong residents have been flocking to supermarkets to stock up on rice in sporadic panic-buying.

The move comes as wholesale prices of Thai rice surge, along with other staple food.

One wholesaler said prices in Hong Kong might go up by 30 percent in the next two months.

Shoppers have been clearing supermarket shelves of rice as they worry about upcoming price hikes.

The Hong Kong government and local consumer council have urged the public not to over-react, as only some brands of rice were sold out.

Affected supermarket chains have also promised to replenish their stocks.

One resident said: "Hong Kong people are too sensitive, prone to panic. It's a crowded city after all."

However, a bowl of rice at a favourite restaurant may rise by 20 percent to US$1.50 if a supply shortage arises, one restaurant federation warns.

About 90 percent of rice consumed in Hong Kong are imported from Thailand.

It was news last week that premium fragrant Thai rice had jumped by 30 percent that led to a bout of panic-buying.

One wholesaler has predicted higher grain prices by June and has already seen orders double in recent weeks.

Mr Lee Kwong-Lam, President of Hong Kong and Kowloon Vermicelli and Noodle Manufacturing Industry Merchants, said: "For the time being, our orders for rice have increased. Previously, they used to order 100 packets, now it's 200 packets. So they are increasing their orders."

Chinese Premier Wen Jiabao led calls to calm the public by saying the central government can guarantee the supply of grains.

To quell any shortages, Hong Kong rice suppliers are also required by law to maintain a 15-day reserve of stock in their warehouses.

Mr Lee added: "This is the year of inflation. Food prices are on the rise, everything from milk to milk powder, it's all up. "

The combination of a weaker currency and reliance on food imported from overseas has left the city vulnerable.

Eggs and cooking oil, for instance, have also risen as much as 30 percent since the beginning of the year. - CNA/de