Rice prices have hit new records for a fourth consecutive day after the world’s biggest importer of the grain, the Philippines, said it would be forced to buy 1 million tons of the grain to feed its population.

This from Bloomberg:

Rice, the staple food for half the world, rose as much as 2.9 percent to $21.60 per 100 pounds in Chicago, before paring gains. The price has doubled in the past year. Philippine President Gloria Arroyo announced two rice tenders today and pledged to crack down on hoarding. Anyone found guilty of “stealing rice from the people” will be jailed, she said.

“Forget the credit crunch for a moment. We are now in the early stages of a global “food crunch” that could have far more serious consequences,” says Justice Litle in Taipan Daily.

“With the price of grains going through the roof, government officials in grain-exporting countries have become alarmed by rising food costs at home. Their natural response has been to artificially limit grain exports, through the use of expensive tarriffs and outright quotas.

“With normal supply lines cut short — or in some cases, cut off completely — the global grain markets have been tipped into a panic. Suddenly, the marginal suppliers are no longer there. If you think of grain availability like financial liquidity in a time of crisis, the picture becomes clear.”