Thursday, November 13, 2008

Risotto al olio

"Thailand on Monday said it planned to barter rice for oil with Iran in the clearest example to date of how the triple financial, fuel and food crisis is reshaping global trade as countries struggle with high commodity prices and a lack of credit.

The United Nations’ Food and Agriculture Organisation said such government-to-government bartering – a system of trade not used for decades – was likely to become more common as the private sector was finding it hard to access credit for food imports.

The price of Thai medium-quality white rice soared to an all-time high of above $1,000 (€798, £641) a tonne in May but has since dropped to $660 a tonne on the back of a large global crop. Prices are still well above their pre-crisis average of $250 a tonne. Chaiya Sasomsab, Thailand’s commerce minister, said Thai officials planned to travel to Iran by the middle of November to “discuss the specifications of oil and rice that would be exchanged”." (Thanks Leila)

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