fletchk said...
Sadly it has to be about the price of rice in Sri Lanka.
Easy. Cost of crude oil price rises on a small economy means transport is more expensive. Add to that changing weather patterns and its affect on crops. Poorer Harvests means higher prices. Demand is growing while supply is dwindling as the demand on rice grows globally. Note that China and India are also massive consumers of rice and their demands are ever increasing. That leaves Sri Lanka with the left overs. But there is a max limmit there of what people can afford to pay there, so it makes it unprofitable to import rice unless the prices go up.
At least thats what I think.
Australia is like Sri Lanka, in terms of windsurfing - small market as opposed to Europe and America, we are spread out across a vast land which makes distribution costly because of prices of fuel- Europe and America is densly populated in comparrison. Our demands are filled only after the other massive markets have had their fill, so we are left with the leftovers. To make it worthwhile to import prices are hiked by the manufacturer to our local distributors, and this goes up again at the point of sale.