London's popular curry houses feel the heat as costs of basic ingredients
rise dramatically.  One business man is considering closing one of his
restaurants if prices do not stabilise.  Britain's rice miller's group does
not expect prices to recede, as global demand spirals.

LONDON, ENGLAND, UNITED KINGDOM (APRIL 25, 2008) REUTERS -

 As chef and restaurant owner Azmal Hussain serves up his piping hot
signature dish 'chicken a la Hussain' he jokes with customers in his East
London restaurant that they better finish up all their rice.  
   Jokes aside, the steep rise in the cost of Basmati rice has forced
Bangladesh-born Hussain to raise prices on his menu for the first time since
he opened his doors to London's curry-obsessed masses in 1999.
   Three months ago Hussain paid 14.99 pounds (approx. 30 USD) for a 20
kilo bag of basmati rice. Today that same bag costs him 24.99 pounds (approx.
50 USD).
   "I have to survive. I have to pay my bills.  No body will pay my
bills.  If I continue like this I cannot pay my staff.  I cannot pay my bills.
So then what happens?  I'll have to go from here and that I don't want,"
said Azmal Hussain, Preem & Prithi Restaurant.
    Last week, U.S. rice futures on the Chicago Board of Trade hit a life
time high above 25 USD.  In Thailand rice surged to 1,000 USD a tonne on April
24. 
   Export curbs by some of the world's biggest rice producers, spiralling
energy costs and growing demands from emerging economies such as China and
India, are fuelling concerns that there is not enough food to go around. 
   Last October, India --  the world's second largest rice exporter after
Thailand -- banned exports of non-basmati rice to rein in prices and control
inflation.
  Two months ago New Delhi reinforced those bans as inflation hit a
14-month high. 
  Among others which imposed their own export controls have been Egypt and
Vietnam, which is the world's third largest rice producer. 
   Battling with its own inflation issues, Indonesia, Southeast Asia's
largest rice consumer, said it would curb medium-grade rice exports.
   Britain's rice millers group said its very difficult to predict where
rice prices go in the near future. 
   Alex Waugh, director of the Rice Association told Reuters on Monday
(April 29), that a lot depends on this year's rice harvest.
   "In my opinion and in the view of most in the grain trade, we are
not going to see prices collapse back to the level they were.  What we are
seeing is a real increase because of the rising demand in the world just
because of population.  We have 80 million new mouths to feed every year.
Which is the equivalent of Germany.  A new Germany every year," said
Waugh.
    Meanwhile, in Brick Lane Azmal Hussain insisted he would never
compromise on quality and would continue to serve top grade basmati rice to
his customers.
    However, the over 60 percent price rise in his most basic ingredient
has left Hussain with no other option but to consider closing down one of his
four restaurants.
   "Now the credit crunch and the food crunch makes my profit margins
less so if people cannot offer," said Hussain.
   The restaurant in question is Jeet which is around the corner from
Hussain's flagship Preem, well known by many Londoners who flock to this
ethnically diverse part of the city where road signs and names on public
buildings are both in English and Bengali.
  Much of curry traffic comes from tourists and Hussain is looking forward
to feeding more them with is piping hot curries in the build-up to the 2012
London Olympics.
  While the Olympics might be a saviour of sorts to London curry trade,
Hussain is not wasting time and is already working on  a post Olympic plan
which involves building a hotel in Brick Lane.  His hotel will have a fast
food court which specialises in fixed priced South Asian meals.
  But the price of Hussain's 'Happy Meal' will not be 4.50 pounds.  It is
more likely to be six pounds, which is just under 12 USD.