Madagascar is seeking 150 000 tonnes of cheap imported rice to fight spiralling prices of the country’s staple food and prevent further political unrest over living costs, the minister of industry said yesterday.

Olivier Andrianarison told Reuters in an interview that the government could not buy the rice itself but was appealing to rice-growing countries to sell their surplus to local importers at knock-down prices this year.

“The first objective is for our people to have enough to eat,” Andrianarison said, adding: “We are risking social and political chaos in this country if this issue is not addressed.”

Rice is the staple diet of Madagascans, the majority of whom live on less than a dollar a day, but its average price has surged by nearly 75 percent to around 3 500 francs ($0.344) a kg since January.

Madagascar consumes almost 2.5 million tonnes of rice annually, and the government says usually 200 000 tonnes of it is imported. However, this year’s domestic stocks were damaged by cyclones Elita and Gafilo which ripped through the island in January and March.

Analysts say historically high global oil prices and a collapse in the Malagasy franc also forced up the price of the country’s staple.

Stabilise prices

But Andrianarison said increases have been further fuelled by speculators holding back stocks in anticipation of more price hikes.

Plans to import rice sends a signal to speculators that the government is willing to intervene to stabilise prices, the minister said. “The aim is to be under 3 500 francs per kg,” he said. “The strategy is to tell everybody that they won’t get more than this. It should prompt them to sell.”

The government is appealing to rice growing countries including Thailand and Pakistan to sell at around $200 per tonne, or two thirds of its current international market price, Andrianarison said.

“We cannot subsidise rice. We are not allowed under IMF rules. So we need help,” he said. He said 12 500 tonnes of rice were due to arrive in October from Thailand, 5 000 tonnes of which are a gift from the Thai government. Madagascar was also appealing to Pakistan for help, Andrianarison said.

Poverty-stricken mothers, army reservists and university students took to the streets of the capital in June in a series of protests that rocked Madagascar.

Hundreds of mothers from the capital’s slums marched through the city holding up empty plates, demanding authorities do something about the cost of living.

<B>Tim Cocks</B>