Major Retailers limiting Rice Puchases - Food Shortage

[yby1]

http://abcnews.go.com/Business/Economy/story?id=4710874&page=1

NEW YORK, April 23 (Reuters) - Wal-Mart Stores Inc's Sam's Club warehouse division said on Wednesday it is limiting sales of Jasmine, Basmati and long grain white rice "due to recent supply and demand trends."
Sam's Club and Rice

The news came as rice prices surged, with U.S. rice futures hitting an all-time high Wednesday on worries about supply shortages.

On Tuesday, Costco Wholesale Corp, the largest U.S. warehouse club operator, said it has seen increased demand for items like rice and flour as customers, worried about global food shortages and rising prices, stock up.

This is outrageous. We do we go into panic mode in this country so easily? All this is going to do is drive up the prices of commodities similar to what's happening with oil prices. This is NOT GOOD.

[meganth]

From what i've read there is some sort of need for worldwide rationing of rice. Australia has had a total rice crop failure this year and other countries are experiencing poor harvests.

It is outrageous. They're rioting in poor countries because of this. And like i said in the "expensive" thread, it's only going to get worse.

And boy is my MIL going to be pissed about all this rice news.

[jennylou]

I do like to stockpile. But, I do it more from a it's X price today on sale, when I need it it'll be more expensive, so I will buy it today. It's how I'm able to keep my grocery budget down by buying when things are on sale.

How much rice are people buying that they're putting limits on it? I myself only buy a big bag at a time - it usually doesn't go much on sale, so it's not something that I stockpile more than the big bag.

[yby1]

I do like to stockpile. But, I do it more from a it's X price today on sale, when I need it it'll be more expensive, so I will buy it today. It's how I'm able to keep my grocery budget down by buying when things are on sale.

How much rice are people buying that they're putting limits on it? I myself only buy a big bag at a time - it usually doesn't go much on sale, so it's not something that I stockpile more than the big bag.

I think people are buying in excess of 50 pounds at a time. Here in Los Angeles, many people are buying large amounts to send to family in the Philippines, where they are being hit real hard by this shortage.

[jennylou]

Ah, I see. I guess that makes more sense - people buying to ship it.

[AmyE]

What BURNS me about all of this is that the current high prices are more a function of speculators on the commodities markets rather than the economic basis (supply and demand). Yes, a few rice harvests have been hit, but the main problem is distribution of the current supply, which is more expensive than normal due to higher fuel costs. And even factoring that in, the current and futures prices are WAY higher than they should be. It's totally a panic - not rational, and spreading - because what else do you do when you see the riots on the news?

The idea that people in countries like the US are buying huge bags of rice - even to sell/send to family overseas - is appalling and abhorrent. We can so easily substitute bread, potatoes, corn... even those Asian families in the US who eat lots of rice are not 'dependent' on that carb.

I live in Asia right now, in a very poor part of the region. "Fortunately," most people here are subsistence farmers who grow their own, and what they consume is generally not the varieties that are traded with current high prices.

:mad::mad::mad:

[kwsu44]

What BURNS me about all of this is that the current high prices are more a function of speculators on the commodities markets rather than the economic basis (supply and demand).

And it's not only rice affected but this is one of the main reason gas prices are so high too. I also agree ... it's crazy!

[Southlooper]

What BURNS me about all of this is that the current high prices are more a function of speculators on the commodities markets rather than the economic basis (supply and demand). Yes, a few rice harvests have been hit, but the main problem is distribution of the current supply, which is more expensive than normal due to higher fuel costs. And even factoring that in, the current and futures prices are WAY higher than they should be. It's totally a panic - not rational, and spreading - because what else do you do when you see the riots on the news?


So basically commodities are replacing real estate as the new investment craze? :confused:

[yby1]

So basically commodities are replacing real estate as the new investment craze? :confused:

oil and commodities.

[imagirliegirl]

Ugh. I picked the worst time ever to become addicted to white rice. Maybe I should hit the old Tarjay tomorrow and stock up. :rolleyes:

[Chimichanga]

I heard about this on the radio, but not all of the details.

I like rice, but I can easily move to something else (like mashed potatoes or veggies) as a side. I guess it's not that big of a deal to me as it's not a main staple in my diet. I think we are lucky enough (Americans in general) to have a lot of options.

[phoenics]

Time to go back on Southbeach!! LOL. Just kidding.

I hate artificial price inflation due to panic and greed.

[AmyE]

Time to go back on Southbeach!! LOL. Just kidding.

I hate artificial price inflation due to panic and greed.

Actually, DH and I are southbeach-ing right now, so it's all good for us!

Also, please people - do NOT go to the store and stock up on rice. There is no shortage in the United States, and there won't be (because we have the money to pay for the additional fuel transportation costs and California is one of the world's largest rice producers. We even export the stuff to Japan).

Costco and the rest of the stores are limiting purchases to try to keep people from (stupidly) buying 100lbs of rice, because some shoppers have the VERY MISTAKEN idea that rice will suddenly not be for sale in the US. Not gonna happen. The more people stock up, the higher prices will go, and there is no supply-side reason for doing that.

Just buy the amounts you regularly buy if you really like those varieties of rice (jasmine, basmatic, long grain white). Or better yet, buy brown rice, or medium grain rice, or go craaaaazy and buy short grain.

Really. Don't stock up. It only contributes to the problem, and is completely and entirely not necessary.

....off the soapbox.....

[am_81]

I heard on the news this morning (cant remember what the source was) that part of the limitation's existence is also to protect the restaurants, caterers, etc. If the panic-stricken public tries to go out and stock up on rice unnecessarily, it leaves less for the people who's businesses actually depend on it and need it for valid reasons.

[SiValleySteph]

From cnn.com (http://www.cnn.com/2008/US/04/24/rice.prices.ap/index.html?iref=newssearch), there is no actual rice shortage. In fact, the agricultre dept says this year's crop of long & medium grain rice larger than ever. Only certain varieties are in short supply.

We like Calrose rice ... no shortage of that! Just got my usual 10lb bag the other day. Should last a few months and then I'll get another. It's all I have room for in the pantry anyways.

[Jaycee]

I'm going out now to buy me some rice.