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Apr-26-2008

Rice and Wrong: Food Costs Flummox

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Trade bans on rice have been put in place by India, the world's second largest exporter in 2007, and Vietnam, the third biggest, in hopes of cooling domestic prices. (More...)
Paul McNamara, a professor in the University of Illinois' Department of Agriculture and Consumer Economics, said the situation at Costco and Sam's was unusual because when supplies tighten, the most common response is to keep raising prices, not limit sales. (More...)
"However, like our competitors, we're just taking the precautionary step of limiting sales of the very large 20-pound bags of imported jasmine, basmati and long grain white rice." (More...)
According to the U.S. Rice Federation, the trouble started when rising costs of gas and fertilizer drove up the price of rice worldwide. (More...)
According to Kelly Matthews, executive vice president and economist at Wells Fargo Economic Department, the CPI "assumes you buy the exact same things month after month. (More...)
Rice may be in short supply at grocery stores, but there's plenty of it in the small Crossroads Urban Center warehouse near downtown Salt Lake City. (More...)
H-E-B is not limiting the rice customers can buy, said Cyndy Garza, the grocer's local public affairs director. (More...)
The recent decision by some major retailers to limit rice purchases is a smart economic move. (More...)
Long-grain rice is imported by a broad spectrum of countries in South and Southeast Asia, much of the Middle East, nearly all of Sub-Saharan Africa, and most of Latin America. (More...)
The dynamics of the world food economy are playing out in full force in Oregon as real and perceived shortages are driving prices to record highs. (More...)
Hoarding can be an early indication that inflation expectations are taking root in the broader economy, as consumers buy ahead in anticipation of higher prices in the future. (More...)
Wal-Mart spokesman Phillip Keene declined to comment further on the corporation's decision and said local store managers are not allowed to talk to the media. (More...)
"But no one's saying we're going to run out of wheat. (More...)

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Trade bans on rice have been put in place by India, the world's second largest exporter in 2007, and Vietnam, the third biggest, in hopes of cooling domestic prices. The move caused warehouse club operators Costco and Sam's Club, which sell large bags of the staple item and have lots of small restaurant owners as their customers, to limits sales of rice. Wal-Mart's Sam's Club warehouse chain said''it was''limiting sales of''20-pound (9 kg), bulk bags of Jasmine, Basmati, and long grain white rice to four bags per customer per visit, at all of its locations. It cited "recent supply and demand trends." Costco's CEO Jim Sinegal said he thought the sudden surge in buying''was being triggered by constant media reports highlighting food shortages and rising prices. He said the warehouse club was trying not to limits sales of the items. "If it's a Chinese restaurant who buys from us all the time we can't tell them, 'Why don't you try french fries this week?" he said, "They need rice." [1] In another alarming sign, Wal-Mart WMT has announced that its Sam's Club warehouse stores are now limiting sales of Jasmine, Basmati and long-grain rice to four 20-pound bags per customer, due to supply and demand issues. Costco COST also reported an increased demand for staples such as rice and flour, as customers stock up due to worries about prices and possible shortages. I'm deeply troubled that concerns about food hoarding now exist in a country that's supposedly famous for its "amber waves of grain."[2]

Within an hour, customers cleared three pallets loaded with 50-lb. bags of Super Lucky Elephant brand jasmine rice from Thailand. Real estate broker Mary Jane Galviso snapped up two bags--the limit imposed by this particular store. "This is very frightening," says Galviso, who hails from Orosi, a rural community in California's Central Valley, more than 200 miles southeast of San Francisco. Her local grocery, which specializes in Filipino foods, has run out of Thai jasmine. In a dramatic development for U.S. consumers this month, shoppers and Asian and Indian restaurant owners started panic-buying two of the highest-premium varieties of rice--Thai jasmine and Indian basmati. That led many grocers to run out of the rice, and warehouse clubs including Costco and Sam's Club imposed limits on how much rice shoppers can buy. The restrictions placed by Issaquah (Wash.) -based Costco ( COST ) vary across the country, while Sam's Club, a division of Wal-Mart Stores ( WMT ), limited its customers to four 20-lb. bags of rice. "We've heard of cases where restaurant owners are hoarding three weeks' supply of rice in their basement, which is obviously more than they currently need, which makes the situation even worse," says Richard Galanti, Costco's chief financial officer. In a statement Apr. 24, Sam's Club said its rice limits "are designed to prevent large distributors or wholesalers from depleting our stock.[3]

To be sure, food prices are rising uncomfortably fast, but availability is not a problem. People are jumpy and that's perhaps why news that two big-box warehouse retailers were limiting how much rice their customers can buy received unusual attention. This week, Sam's Club limited customers to four bags of jasmine, basmati and white long-grain rice per visit -- but the limit applied only to bags of 20 pounds or more.[4] In Columbus and across the country, big-box retailers are limiting customers' purchases of rice as prices surge. This week, Sam's Club said customers no longer will be allowed to buy more than four bags of jasmine, basmati and long-grain white rice per visit.[5]

Sam's Club ]] Sam’s Club, a Wal-Mart Stores Inc. warehouse unit, is limiting customers to four bags of jasmine, basmati or long-grain white rice per visit in all U.S. stores, and competitor Costco is said to be considering restrictions as well.[6] Sam's Club, a membership warehouse division of Wal-Mart Stores Inc., is limiting how much rice customers can buy to four bags at a time of jasmine, basmati and long-grain white rice because of "recent supply and demand trends."[7]

As a result there are growing concerns about hoarding taking place in food producing countries. Sam's Club, the wholesale-style store for Wal-Mart, has limited the number of 20-pound bags sold per customer to four bags at its U.S. stores, said Karin Campbell, spokeswoman for Wal-Mart Canada. She noted traditionally the average customers doesn't buy 80-pounds of rice at one time. "This doesn't pertain to retail packages of rice," Campbell said. "There's no limit on them." She added that none of the Wal-Mart or Sam's Club stores in Canada have made the move to restrict sales of rice.[8] "I heard from our sales force that one lady went into a cash-and-carry and tried to buy eight 20kg bags." Wal-Mart said that Sam's Club, its wholesale business, which sells food to restaurants and other retailers, had limited each customer to four bags of long-grain white rice per visit. In the past three months wholesalers have experienced a sharp rise in demand for food items such as wheat, rice and milk as businesses stocked up to protect themselves against rising prices.[9]

Worried about rising prices worldwide, customers have been stocking up, prompting sales limits. The global run on food that has led to shortages and riots in Egypt, Haiti and other nations has made its way to U.S. shores. Concerned about rising prices and limited supplies of staples such as rice and flour, customers across the country have been cleaning out the shelves at big-box retailers, including Wal-Mart Stores Inc.' s Sam's Club and Costco Wholesale Corp. stores.[10] The chain said on Wednesday that it was limiting sales of 20-pound (9 kg) bulk bags of Jasmine, Basmati and long grain white rice "due to recent supply and demand trends." That came a day after Costco Wholesale Corp (COST.O: Quote, Profile, Research ), the largest U.S. warehouse club operator, said it had seen increased demand for items like rice and flour as customers, worried about global food shortages and rising prices, were stocking up.[11]

Global rice prices have more than doubled in the past year partly because countries such as China and India -- whose economies are booming -- are buying more food from abroad. Key rice producers banned exports of rice to ensure that their own people could continue to afford to buy the staple: India, China, Vietnam and Egypt have all blocked exports and so demand for rice from countries such as the United States has increased. Costco Wholesale, the largest warehouse operator in America, said this week that demand for rice and flour had risen, with customers panicking about shortages and hoarded produce. Tim Johnson, of the California Rice Commission, said: "This is unprecedented. Americans -- particularly in states such as California -- have on occasion walked into a supermarket after a natural disaster and seen that the shelves are less full than usual, but we have never experienced this."[9] The climbing global price of rice and other staples shows no sign of leveling off, given caps placed on exports and various supply-side squeezes. Food experts predict hunger and poverty in poor nations along with a restricted supply of grains coupled with rising prices in this country. The worldwide rice crisis lapped over into the United States this week when Costco Wholesale and Wal-Mart's Sam's Club, the two biggest warehouse retail chains, limited the amount of bulk imported rice customers can buy.[12]

"The core reason for the increase is the price of corn and corn-based ethanol, which we morally object to," Jarosch said. "It's right up there with burning your food to heat your house." The concerns about flour supplies also appear to have hit Costco, which like Wal-Mart Inc.' s Sam's Club is a major wholesale supplier. Costco Wholesale Corp. Chief Executive James Sinegal told Reuters this week that some store managers have put purchase limits in place because of the unusual demand for rice and flour.[13] Sam's Club, a warehouse retail chain, is a division of Wal-Mart Stores Inc., but Wal-Mart has no plans to limit food purchases, according to a report by The Associated Press. Heavy demand from developing countries and poor crop yields have pushed rice prices up 70 percent this year, the AP reported.[14] The price increase has led some to worry there won't be enough to go around. The concerns led warehouse retail chains Costco Wholesale Corp. (nasdaq: COST - news - people ) and Sam's Club, a division of Wal-Mart Stores Inc. (nyse: WMT - news - people ), to limit the amount of rice they sell in bulk to customers.[15] Some Sam's Clubs have limited sales to four 20-pound bags a visit. Costco officials have said sales of flour, rice and some cooking oils jumped recently so some of their warehouse stores have imposed limits of two bags of rice a day to customers. Sam Ciccarello, general manager of the Tampa-based food importer Vigo, said people in the business have known for a while this was coming.[16] Sam's Club tried to slow down sales of imported rice by issuing a nationwide limit on the amount consumers can snap up. A Wednesday statement from the corporate office said its members are restricted to buying no more than four 20-pound bags of imported jasmine, basmati and long grain white rice. The sale of smaller bags is not limited, either at Sam's Club or its sister Wal-Mart stores. Both Costco locations in Tucson, one at 6255 E. Grant Road and the other at 3901 W. Costco Drive, are not limiting rice sales, but other Costco locations across the country have done so.[17] Sam's Club, a chain owned by retail giant Wal-Mart, announced Wednesday it was placing a limit of four 20-pound (nine-kilogram) bags per person for imported jasmine, basmati and long grain white rices as a "precautionary step." "This temporary cap is intended to ensure there is plenty of rice for all our members," said Sam's Club, which has 600 stores across the United States, adding that the measure did not apply to smaller bags of rice. The move follows similar steps taken by its main rival, Costco, which has also limited the sale of rice in its stores. Both companies insist that they have plenty of rice but say the steps were necessary to ensure there was enough for all of their clients.[18] Sales of Sam's Club's 20-pound bags of jasmine, basmati and long-grain white rice are limited to four bags per member, according to a statement from Wal-Mart Stores Inc. released Wednesday.[19]

Amid reports in the U.S. about some consumers hoarding rice as prices skyrocket, U.S.-based Wal-Mart Stores Inc.' s Sam's Club warehouse division said it was restricting purchases to four nine-kilogram bags. The same scenario won't play out at Wal-Mart Canada or at Sam's Club Canada, said Karin Campbell, manager of corporate affairs for Wal-Mart Canada. "We don't need to restrict the sale of rice here in Canada at this point," she said.[20] April 23 (Bloomberg) -- Wal-Mart Stores Inc.' s Sam's Club warehouse unit is restricting purchases of some types of rice to four bags a visit as prices reached a record in Chicago futures trading.[21]

Sam's Club, a division of Wal-Mart Stores Inc. (WMT), said it was limiting customers to four bags at a time of some types of rice. The purchasing restrictions on staples like rice are limited to wholesale outlets, as several retail grocery store chains said Friday they weren't taking similar action.[22]

The policy will limit customers to four bags of 20 pounds or more of jasmine, basmati and long-grain wild rice. The nation's largest retailer said the policy was "effective immediately" at all of its nearly 600 U.S. Sam's Club stores.[23] The Sam's Club limit affects 20-pund bags, not retail portions. It will only allow customers to buy four bags at a time of imported jasmine, basmati and long grain white rice.[15] Sam's Club stores nationwide are restricting customers to four bags of jasmine, basmati or long-grain rice per visit, the report said.[24] Sam's Club said customers would no longer be allowed to purchase more than four bags of jasmine, basmati or long-grain white rice on each visit.[10]

Even as some types of the grain were in shorter-than-usual supply at stores, industry executives and observers emphasized there is no rice shortage in the United States. Citing global supply and demand issues, Wal-Mart-owned Sam's Club and rival Costco Wholesale both placed limits on the number of bulk bags of imported rice that customers could purchase. A Costco customer picks up his allotted one 50-pound bag of rice at a Costco in Mountain View on Wednesday.[25] Costco's chief executive said the big-box retailer is thinking twice about letting customers buy multiple pallets of flour to preserve supplies. Restaurants and other large-scale customers appear to be buying so much rice that Costco, Sam's Club and other wholesalers have put limits on the amounts they sell, leading some consumers to stock up. This has resulted in some individual stores in places like California reportedly running out of rice. "It's fascinating; I don't recall anything like this in modern food-retailing and supermarket history in the U.S.," said Benjamin Senauer, co-director of the University of Minnesota's Food Industry Center.[13] Experts think the rising cost of rice as well as food will not affect the average consumer as much as the cost of gas, which some economists think will be about $4.50 a gallon by the summer. While most stores in Bakersfield do not have any restrictions on the amount of rice people can buy, Sam's Club has limited the amount of rice they are selling to consumers. Costco's only limitation is that no one costumer is allowed to buy their entire stock.[26]

"At the present time, BJ's Wholesale Club is not limiting the amount of rice purchases made by our members, but, due to the current market situation, that could change at any time," spokeswoman Sharyn Frankel said in a statement. In New York's Chinatown, shop owners said that they haven't seen people stocking up amid fears of rice shortages. At Bangkok Center Grocery, one of the main suppliers of Thai food products in New York City, manager Tom Pongsopon said the price of a 25-pound bag of Jasmine rice at his Chinatown store has gone up from $15 to $20 in a matter of months. People continue to buy rice, but the supply is OK at this point.[27] Colon, a BJ's customer, bought several bags on Friday afternoon. "I saw in the news that the rice prices were really jumping," he said. "We don't usually eat much rice, but I figured we might as well get it at its lowest prices." BJ's spokeswoman Sharyn Frankel said Friday that BJ's "is not limiting the amount of rice purchases" made by its members, but added "that could change at any time." Other BJ's customers, like Joe Lindmeier of Pittsgrove, have noticed rising food prices across the board. He said between the cost of food and gas, he's now waiting longer before heading to the grocery store. "We live out in Pittsgrove, so we have to watch how many times we come all the way out here because of gas," he said.[28]

Rice futures hit an all-time high on U.S. commodities markets on Wednesday, raising fears that market speculation is adding upward pressure to food prices already suffering from rising demand, drought and diversion of crops to biofuels. The record high comes the same week as Sam's Club and Costco, two large membership-based supermarket chains, took the almost unheard-of step of limiting the amount of rice they are willing to sell to a single customer.[29] There are reports also that Costco and SAM's club, in the U.S., have been restricting the sale of rice. There are reports that in over 33 countries across the globe there have been food riots this year already. Again, I believe that emotion is taking over, and people are not correctly analysing the situation and now the talk is that this trend will continue indefinitely. People have transformed from telling me that I don't know what I am saying about oil prices going to US$120 per barrel, to the point now where they are saying that these rises are going to continue indefinitely and predicting indefinite doom and gloom. Now anyone who understands how markets work will realise how irrational these arguments are, and will also appreciate that what is driving these comments is nothing more than emotions.[30] "I buy a bag about every two months," Lebron said. It's all for personal consumption. Lebron had heard that major retailers such as Costco and Sam's Club are limiting high-volume sales of rice, but the only effect he's seeing is the price increase.[16] As a result of a global price hike on rice, the owner of one Thai restaurant told News 8 she has seen bags of jasmine rice jump from $29 to $43. Both Sam's Club and Costco have put limits on the number of bags of rice local restaurants can buy.[31] The price was always $18, $19 for about 100 pounds," Jung said. "Right now it's up maybe $40-something." Now, things are so bad, stores like Costco and Sam's Club are limiting how much rice they will allow customers to buy.[32] SALT LAKE CITY (ABC 4 News) - After recent news about the cost of food skyrocketing all around the world, grocery warehouses like Sam's Club and Costco here in the U.S. are limiting the amount of rice each shopper can buy.[33] The move comes as U.S. rice futures hit a record high amid global food inflation, although some rice experts said warehouse chains may be reacting less to any shortages than to stockpiling by restaurants and small stores. A statement on the Sam's Club's Web site calls it a precautionary step that all its stores except those in New Mexico and Idaho are following.[34] Pricey rice has shoppers hunting for bargains By ROBERT PRESS Staff Writer [email protected] VINELAND -- One day after discount warehouse stores Sam's Club and Costco put limits on rice purchases by consumers and BJ's Wholesale Club indicated it might soon follow suit, local shoppers said they're worried about stretching their dollars for all grocery items. U.S. rice futures have hit a record high and small stores and restaurants are stockpiling, resulting in a reaction from national bulk retailers, the Associated Press reported this week.[28] The rice restriction at Sam's Club does not apply to the 2,523 Wal-Mart Supercenters that combine a full grocery section with general merchandise. Earlier this week Costco, which has 534 warehouse stores, said it had seen sales spikes for flour, rice and some cooking oils and was considering limiting sales in stores where it had limited supplies.[23] Sam's Club blamed the restriction on "supply and demand trends" and said it was working with suppliers "to ensure we are in stock." The policy involves only bags weighing 20 pounds or more and does not affect smaller packages sold at the store or its sister Wal-Mart outlets. This week, Costco said it had seen sales of flour, rice and some cooking oils leap.[10] So far, shoppers have not been snapping up staples, although there has been a slight increase in the sales of rice. This week, Sam's Club, a division of Wal-Mart Stores, Inc., limited bulk purchases of rice nationwide, including the seven Utah locations, after the Seattle-based Costco Wholesale Corp. imposed similar restrictions in some of its stores.[35] Sam's Club followed Seattle-based Costco Wholesale Corp. in putting limits on rice purchases. This temporary restriction does not apply to retail-sized rice for sale in Sam's or elsewhere at Wal-Mart stores, according to the company statement.[36] Sam's Club followed Seattle-based Costco Wholesale Corp., which put limits in at least some stores on bulk rice purchases. Sam's Club declined to say if this is first time it has restricted sales of bulk foods.[27]

The Internet is buzzing over the decision by Sam's Club and a few Costco outlets to limit bulk rice purchases to customers. How the World Works has been accused by some readers of peddling a relentless supply of doom of late, but when the price of the staple food of half the planet's population triples in less than five months, governments get nervous. It's a big story, and unlike in the case of corn (biofuels) or wheat (bad weather) there is no easy villain to blame.[37] Sinegal didn't return a phone call from Bloomberg News seeking comment. Costco and Sam's Club have extensive distribution systems and source worldwide, so they can redistribute their rice supplies within the United States, meaning limits on customers may not be a long-term problem, said Degen. "We are working with our suppliers to address this matter to ensure we are in stock,'' Sam's Club's Reed said. The stores aren't limiting purchases of flour or oil, she said. Reached via phone, she declined to comment further.[21] Sam's Club said it is limiting the sale of Jasmine rice from Thailand and Basmati rice from India and other imported long-grain rice to four bags per member visit. "We are working with our suppliers to address this matter to ensure we are in stock, and we are asking for our members' cooperation and patience," said Kristy Reed, a Sam's Club spokeswoman. She said purchases of flour and oil are not restricted.[12] Sam's Club is limiting sales of 20-pound bags of imported jasmine, basmati and long grain white rices to four per member. "This temporary cap is intended to ensure there is plenty of rice for all our members," the company said in a statement.[35] Like our competitors, we're just taking the precautionary step of limiting sales of the very large 20 pound bags of imported jasmine, basmati and long grain white rices, in our case, to four per member. This temporary restriction does not apply to retail-sized rice for sale in Sam's or elsewhere at Wal-Mart stores. It also doesn't apply in New Mexico or Idaho.[38] The retail chain, a division of Wal-Mart Stores Inc., is limiting sales of 20-pound bags of imported jasmine, basmati and long grain white rice to four per member. Company officials said in a prepared statement there is enough rice for members, but they are taking a precautionary step like competitors.[36]

The Sams Club division of Wal-Mart Stores Inc. reportedly began rationing sales of rice to four bags per customer.[39] In the United States, Sam's Club, the wholesale unit of Wal-Mart, announced Wednesday it was capping sales of nine-kg bags of rice at four bags per customer per visit to prevent hoarding.[40] The company's bulk supply division, Sam's Club, announced that it would sell a maximum of four bags of rice to each customer, after Costco, a rival chain, said it would place caps on some rice and flour sales in California.[41]

Bulk retailer Costco, as well as Sam's Club, is limiting the number of large bags of imported rice customers can buy because of global supply and demand issues.[25] The two biggest U.S. warehouse retail chains are limiting how much rice customers can buy because of what Sam's Club, a division of Wal-Mart Stores Inc., called on Wednesday "recent supply and demand trends."[27] BENTONVILLE, Ark. (AP) — Sam's Club, the membership warehouse division of Wal-Mart Stores Inc., is limiting how much rice customers can buy because of what it calls "recent supply and demand trends."[42]

Sam's Club, a warehouse retail chain that is a division of Wal-Mart Stores Inc., has reacted to the run on rice by limiting how much consumers can buy.[43]

"However, like our competitors, we're just taking the precautionary step of limiting sales of the very large 20 pound bags" of imported white rice, it said. Sam's Club, a members-only bulk retailer chain owned by Wal-Mart, the world's largest retailer, said smaller-sized bags of rice were not affected by the restrictions; nor did they extend to Wal-Mart stores. "This temporary cap is intended to ensure there is plenty of rice for all our members.[44] NEW YORK, April 24 (Reuters) - Limits placed on sales of several kinds of rice by Wal-Mart Stores Inc's (WMT.N: Quote, Profile, Research ) Sam's Club warehouse division are meant to stop large distributors or wholesalers from depleting its stock, a spokeswoman said on Thursday.[11]

The problem is not quite as dire as it sounds, even if it does carry global implications. Many small businesses that shop at warehouse stores such as Sam's Club and Costco have apparently been buying bags upon bags of rice in hopes of hedging against the looming threat of higher prices.[45] Sam's Club in Myrtle Beach, like other stores in the national warehouse retail chain, is limiting the amount of rice it will let people buy to four 20-pound bags.[34] "We believe limiting rice purchases to four bags per visit is consistent with the needs of the majority of our members, including many restaurants," said Sam's Club spokeswoman Susan Koehler in an email. Koehler said Sam's Club, the No. 2 U.S. warehouse club operator, is continuing to work with its suppliers to manage inventories to meet demand.[11]

There are no worries about significant food shortages reaching the level of individuals, and no reports of Chicago-area grocery stores running low on products for consumers. Local commercial bakers are ordering more flour as they brace for problems in the supply pipeline for rye flour, while some local restaurants that use a lot of rice are dealing with purchase limits. "This just started happening a week or two ago," said Sunil Patel, part owner of the Star of India Restaurant on North Sheffield Avenue, whose supplier is limiting him to four to six bags of rice per purchase. He has enough rice to serve but he said he has concerns if rationing continues.[13] Sam Wang, an employee at Four Seasons Restaurant in San Jose, said there are no plans to boost the $1 per bowl of rice price but that could change. Patel, the author of "Stuffed & Starved: The Hidden Battle for the World Food System," which describes a dysfunctional world food system, said he sees no reason food prices will decline. Nor does he believe consumers will cease stockpiling in anticipation that prices will continue to rise.[12]

The restaurant goes through about 200 to 350 pounds of rice, which is imported from China, each week. He, too, is taking smaller profit margins to avoid passing on the costs. He said he doesn't have the storage space to stockpile extra rice even if he wanted to. U.S. rice futures soared to an all-time high this week as investors bet that surging world demand will continue to pressure already dwindling stockpiles. Relentless demand from developing countries and poor crop yields have pushed rice prices up 70 percent so far this year, raising concerns of severe shortages of the staple food consumed by almost half the world's population.[34] Rice for the most actively traded July contract jumped 62 cents to $24.82 per 100 pounds on the Chicago Board of Trade, after earlier rising to a record $24.85. Relentless demand from developing countries and poor crop yields have pushed rice prices up 70 percent so far this year, raising concerns of severe shortages of the staple food consumed by almost half the world's population.[27]

Droughts and bad weather in foreign rice-producing countries, rapid increases in consumer demand, changes in food consumption habits and marked jumps in fuel, transportation and fertilizer costs helped push rice prices up 35 percent or more in the past few months, experts say. "It's happened almost overnight," said Don Haverkamp, human resources director for Sysco Food Services of Portland. "It all adds up to considerable challenges in getting enough supplies to meet demand." Consumers, in some instances, appear to be reacting to fear of shortages by binge buying and hoarding, he said.[43] The steep increases in food prices globally have led to violent food riots in poor countries including Haiti, Senegal and Pakistan. The prices of many foods, including beer, bread, coffee, pizza and rice, have risen rapidly in recent months as the United States contends with its worst bout of food inflation since the 1990s. The cost of groceries is rising at an annual rate of about 5 percent this year, much faster than the overall rate of consumer inflation.[23]

United Nations Secretary-General Ban Ki-moon has warned that higher food prices could hurt global growth and security. The effect of rising prices took a surprising turn this week at least a surprising turn by U.S. standards when it comes to sales of rice. Rice prices in particular have surged this year as exporters curb supplies.[1] A North Vancouver rice importer said he is expecting to pay 30 per cent more for California rice this week on top of the 20-per-cent increase he has already absorbed this year. Lower Mainland consumers who have so far been insulated from global price hikes approaching 300 per cent may be in for a sticker shock when they reach for their next bag of rice at the supermarket. "The U.S. market was not keeping pace with what's been happening in the world market so they are playing catch-up," said Bill Hornell, president of Sonray Sales. "That's 50 per cent now.[40]

WASHINGTON (AFP) — Two major U.S. bulk retailers are rationing the sale of large bags of rice to consumers amid a growing global food crisis marked by skyrocketing prices and heavy pressure on demand.[18] U.S. production of long-grain and medium-grain rice is strong, and the global crop is larger than ever, Childs said. With some of the principal exporters of the higher-priced rices, such as India and Vietnam, shunning foreign sales to control prices at home and the cost of food generally going up, the price of rice has been climbing to new heights. What adds to the price spike -- and the run on specialty products such as basmati -- is that rice consumers tend to be very loyal.[25] U.S. production of long-grain and medium-grain rice is strong, and the global crop is larger than ever, said Nathan Childs, an economist and rice expert with the U.S. Department of Agriculture. With some of the principal exporters of the higher-priced rices, such as India and Vietnam, shunning foreign sales to control prices at home and the cost of food generally going up, the price of rice has been climbing to new heights. "Europe and some of those countries can't get it from other countries" that have traditionally supplied rice, so they're turning to the United States, Cola said. "It's not creating a shortage, but it is making it more expensive." The Associated Press contributed to this report.[34]

"There is no rice shortage in the U.S.," said David Coia, a spokesman for the industry's USA Rice Federation. "What happened is because of perception of problems in the world market, a few people try to buy more rice than they usually do, and these two companies have decided they want all their customers to be able to purchase rice." "What happened was one person bought a three-month supply instead of a two-week supply that they normally buy," Coia told AFP. He predicted that pressure on the price of rice would ease by the end of next year, noting that more and more fields are being used to grow rice. U.S. rice production provides 88 percent of the domestic consumption while imports from countries such as Thailand and Vietnam make up the rest.[18] In March 2007, the index was up 5.2 percent. "There is no shortage of rice in the United States, and my understanding is that you have these companies like Sam's Club and Costco that want to have rice for all their customers, not just the large purchasers who hoard,'' Coia said by telephone. The worldwide supply shortfall will begin to ease with the June harvest, and may be resolved by the end of 2009, as farmers increase their crops to meet the demand, he said.[21] The limits on jasmine, basmati and long-grain white rice, a response to "recent supply and demand trends,'' will be put into effect in all U.S. stores where allowed by law and are effective immediately, Sam's Club spokeswoman Kristy Reed said today in an e-mailed statement.[21] Warehouse retailer Sam's Club is limiting how much of certain types of rice purchasers can buy amid tight supplies and soaring demand. The nation's largest retailer said the policy was "effective immediately" at all of its nearly 600 U.S. Sam's Club stores.[23] VOICEOVER: The two biggest U.S. warehouse retail chains are limiting how much rice customers can buy because of what Sam's Club called "recent supply and demand trends."[29]

As the price of rice continues to rise, Sam's Club in Wilkes-Barre Township has joined other large-volume wholesale stores in the nationwide chain in limiting the bulk amount customers can buy.[36] MIAMI (AFP) — Top retailer Wal-Mart's Sam's Club unit said Wednesday it is limiting the amount of rice individual shoppers could buy at one time, as rice prices hit new records around the world.[44]

"Overall, everything is going up (in price), not just rice." Many consumers have had the urge to stockpile supplies like Gutierrez in reaction to increasing rice prices and the decision by large-scale retailers such as Costco and Sam's Club to ration rice purchases.[46] Some industry experts believe small-restaurant owners or families who buy rice in bulk from warehouse stores like Sam's Club and Costco may be stockpiling as a hedge. That, in turn, has prompted the stores to set limits out of caution.[47] Sam's Club followed Seattle-based Costco, which put limits in at least some stores on bulk rice purchases.[29]

As is always the case with supply and demand, the price of the grain is going up. The Los Angeles Times, meanwhile, reports that Costco is not only considering a limit on rice purchases but has also seen sales spike on flour and some cooking oils, and it's thinking about limiting purchases on those items in specific stores.[45] There is plenty of supply to meet demand." People who eat rice as a staple or businesses such as ethnic restaurants saw the price of rice start to climb and rushed to buy it before the price went any higher, Staking said, which leads to hoarding, less stock in stores and a perceived shortage. In reality, the higher cost is reflective of changing economic times such as more expensive transportation and fuel costs.[46] Cucina Manila cashier Pops was incredulous when told that people are reportedly buying rice in bulk in the United States and Canada and shipping it to relatives in Asia. "It would cost $100 to ship a bag of rice to Philippines," she said. "Why not just send the $100 and they can buy three bags." She said her brother in the Philippines mentions the price of rice every time she talks to him on the phone, but that the women who frequent the Joyce Street hole-in-the-wall eatery aren't worried. She has not laid in any extra stocks of rice for the restaurant.[40] The rush for rice has come hand in hand with soaring prices in recent months. Jackie Zhenz, owner of China Dragon restaurant in North Myrtle Beach, said the cost for a 100-pound bag of long grain rice has doubled this year, now costing between $40 and $43. He stocked up on a few extra bags when prices were around $39, because the Charleston company he buys from told him prices will continue to rise. Zhenz hasn't had to pass on the price to his customers, but he's not sure how long he can sustain his small eatery this way.[34]

Mina Patoo is the owner of Shiraz Food Market on Somerset Street. An 18-kilogram bag of rice she once sold for about $40 now costs her $50. Ms. Patoo has tried to resist raising her prices, but business is already slowing and people have complained they cannot afford the groceries they once could. She said she doesn't have the answer, but has sacrificed profits to help out on some of the products her customers need, like basmati rice. "We don't make money on those," Ms. Patoo said.[48] Some grocers who cater to area ethnic communities also report no shortage problems, though customers are keenly aware of the rising prices. At Phoenicia Specialty Foods in west Houston, Margie Najafi placed two 8.8-pound bags of basmati rice in her shopping cart. She said she wanted to buy the rice before the price jumps again. "I'm Iranian, and we eat a lot of rice, like every day," she said.[47]

"Ralphs has plenty of rice. No shortages at any of our stores," said Terry O'Neil, spokesman for Ralphs Grocery Co. When Heidi Diep visited the Costco in Alhambra last week seeking rice for her Chinese fast-food restaurant in Silver Lake, the store was out of stock. It had plenty of rice when Diep went back Wednesday, but, thanks to shoppers like Diep and Yang, ran out again. "I picked up as much as I could," Diep said as she hauled a dozen 50-pound bags of Super Lucky Elephant rice and 10 bags of 25-pound long grain into her van and her sister's sedan. The businesswoman said she was stockpiling the grain to avoid future price increases and a repeat of the week when it couldn't be found.[10] "The price on Friday is not the price on Monday," Hornell said. Most local retailers have not dramatically increased the price of rice despite big jumps in the wholesale price of rice from Southeast Asia in recent weeks, but they warned that will change with the next round of wholesale price increases. Bill Eun of Hyundai Oriental Food Market said his wholesaler has jacked up the price of an 18-kilogram bag of rice $3 and warned him that another price hike is on the way. Eun has only raised the price of California rice $1 in his store, to $19.99. Stacks of about 50 bags of unpurchased rice from California, Vietnam and Thailand lie piled against the wall of his Kingsway market.[40]

China Garden on South 14th Street has a "for sale" sign out front. Vicky Chiu, who owns the restaurant with her husband, Francis Chiu, wants to retire but hasn't found a buyer. The high price of rice is only adding to her concerns. Chiu said she won't raise her prices and will have to absorb the additional cost. "All rice is going up 40 percent -- some more," she said. Now 50-pound bags of rice cost her $19 to $20, compared to $15-$16 just two weeks ago.[14] The 20-pound bags range in price from $7 to almost $19, said Abuela's employee Millie Perez. The lower the cost, the bigger the sales, she said, but some people do come in for the Madame Gougousse jasmine long-grain rice, $15.59, or Milagrasa, $18.59.[16]

People are buying six to eight 20-pound bags of basmati rice at $14.99 each, which Atheel Ishaq, manager, considers still a good price. The large store won't take advantage of customers and will sell rice at the same price it was purchased for and as the supply lasts, he said.[49] "Then our regular members can't get it at all." The store's supply of rice has not decreased, but its prices have gone up a little. Shoppers at Costco in Columbus are paying $2.62 more per 20-pound bag than they did two months ago, Feldkamp said. That's 13 cents more per pound.[5]

TAMPA - The global scramble for rice has reached Tampa. One retailer says the price of a 20-pound bag has risen about $3 recently and a major local importer can't get its hands on all the specialty varieties it wants. It's not quite the fallout felt in countries where rice is a staple food.[16] Mr. Chi Jianxin, at a head of a Chinese delegation, is in the country to explore investment opportunities in the agricultural sector. Chi said his company has the financial capacity and expertise to develop and stabilize the food situation in Liberia "particularly in rice production and other cash crops." The announcement isn't going to move the price of rice this year, or next, but it's a pretty clear indicator of which way the world has to go if global food production is to be boosted to match world demand while keeping prices affordable. The developed world, (and in this case, we'll include China in that category, with its $1.68 trillion dollars worth of currency reserves) must find ways to invest in Africa, where there is labor, and land, and a desperate need for inputs, both financial and physical.[37] I even remember someone saying to me that I was talking up the price of oil, even though I am a mere accountant in a country that is responsible for a very insignificant amount of global consumption. Such is the emotion called illogic that so many of us seem to possess. When one looks at the daily oil chart it still shows a very bullish trend, and on that basis some had said that they expect oil to still continue rising unabated. At the same time we are facing rapid increases in global food prices, as evidenced by a very basic staple, rice, which already this year has increased by 117 per cent.[30] Many analysts are now pointing to speculation on commodity markets as an important factor in growing food prices. Rice prices have gone up 70 percent so far this year, raising fears of severe shortages of a staple food consumed by almost half the world's population. Please note that TRNN transcripts are typed from a recording of the program; The Real News Network cannot guarantee their complete accuracy.[29] "We are a world market but one-third of our customers are of the Asian community," who are major consumers of imported rice. The market has not increased its imported rice prices yet but may raise them by up to 50 percent once the store's current supply runs out, she said. Since last fall, large rice producers such as Vietnam, India and Egypt have banned or limited rice exports in an attempt to keep the lid on their domestic food prices.[17]

Vietnam, India, Cambodia and Egypt have all limited export sales to ensure sufficient domestic supplies, which has helped to propel rice prices to record highs, with values in top exporter Thailand surging to $1,000 a tonne. Supply isn't the issue for Calgary consumers -- T&T;, for instance, has received assurances from its U.S. supplier that they'll be able to supply the quantities of rice they'd normally order -- and they have plenty of current supply and inventory on hand, Poon said.[20] The U.S. run on rice is mostly a consumer reaction to international headlines combined with U.S. food-price inflation that turns into a self-fulfilling prophecy, Ezrati said. The price of U.S.-grown long-grain rice -- the type that is in short supply worldwide -- has risen 81 percent this year to $24.46 for 100 pounds as other countries have halted exports.[5]

Despite the actions of wholesale stores, there's no rice shortage "certainly not" in the U.S., Sterk said. Sufficient supplies of other commodities such as wheat and rye are available, and prices for both are well off their peaks from earlier this year, he noted. For instance, Minneapolis Grain Exchange wheat prices hit $25 a bushel earlier this year, but forecasts for bigger crops this spring have pushed prices to around $11.20 a bushel.[22]

LOS ANGELES, April 24 (UPI) -- U.S. consumers have begun stocking up on food staples to beat inflation, causing rice shortages in some stores, various retailers said. Costco Wholesale Corp. said some of its outlets were limiting customers to two bags of rice a day, the Los Angeles Times reported Thursday.[24] Two major U.S. bulk retailers – Sam’s Club and Costco – have started rationing the sale of large bags of rice to consumers. Both companies insist they have plenty of rice but the measure appears aimed at preventing over- stocking among customers concerned by the surging prices of commodities worldwide.[50] Summary: U.S. wholesale retailers Costco and Sam's Club have started to restrict sales of rice as concerns of global supplies mount.[51] U.S. consumers are stocking up on rice as warehouse chains such as Sam's Club ration sales.[6]

Sam's Club, a Wal-Mart Stores Inc. warehouse unit, has started to restrict customers' rice purchases.[6] While limits were placed on rice purchases at Sam's Club stores, spokeswoman Ashley Hardie said Wal-Mart's retail stores were not affected.[22]

At the Sam's Club on Morse Road, signs are posted near the bags of rice telling customers of the four-bag limit, and customers have asked how long it will last. "It depends on what they (suppliers) can get to us," said Janice Trelewicz, the store's general manager.[5]

Wal-Mart, however, has no plans to limit food purchases. Martin's Food Markets, which has three locations in the area, said there are no plans at this time for any stock-piling, and that the trend in customer purchases of rice has not changed. "We haven't seen this at our stores," Tracy Pawelski, spokeswoman for Martin's Food Markets, said. "But looking at the cost increases, with a two-pound bag of branded long rice, the costs have increased between 5 and 6 percent from last year at this time.[7] Allyson Chang, owner of three Asian restaurants in Columbus, hopes the hike in rice prices doesn't get steeper. She buys about 1,500 pounds of rice per week for her three restaurants: Hunan Lion on Bethel Road, Hunan House on E. Dublin-Granville Road and Kobe on Morse Road. Last week, she paid 25 percent more for every 50-pound bag of rice. That's the steepest increase Chang has seen in her 20 years running restaurants in Columbus.[5] The price of wheat has gone up nearly six times since Simpson bought a 50 pound bag in 2002. The Simpsons have avoided steep price hikes including a 13% increase in flour and rice prices this year. "It's a little scary to watch. I feel bad for people who can't afford some of those things that are staples like wheat, rice and beans."[52]

A consumer "panic" has hit California, with shoppers buying up large quantities of rice from Asian supermarkets after hearing about food riots and export freezes in Asia, reports McClatchy Newspapers. "When people saw the price jump $2 or $3, they started buying like crazy--10 bags, 15 bags," said Cu Van, a floor manager at Goldstar Supermarket.[6] In the past few weeks, the price of the big bags has gone up by about $3, Perez said. Supply is especially tight with Asian basmati and jasmine long-grain white rice because Southeast Asian countries are reining in exports to satisfy their own demands.[16] The limit applies to jasmine, basmati and long grain white rice. The international price of rice has risen by 68% this year and Wal-Mart said the restrictions were "due to recent supply and demand trends".[53]

We still have our jasmine rice coming in from Thailand but the price is going up because of the shipment costs and the economy right now. Other local grocery stores like Gerrity's, which has nine locations in Luzerne and Lackawanna counties, Schiel's Family Market in Wilkes-Barre and Wegmans in Wilkes-Barre Township, are not yet limiting the amount of rice customers can buy. Our suppliers have not given us any indication that they anticipate that there would be a problem with the supply of rice, said Jeanne Colleluori, spokesperson for Wegmans.[36] Soaring demand for rice has prompted national stores on the Grand Strand to limit how many bags people can buy and has left restaurants at the mercy of rising prices.[34] According to USA Rice Federation spokesman David Coia, there is no rice shortage in the United States. "It is possible that small restaurants and bodega-type neighborhood stores may be purchasing rice in larger quantities than they do typically to avoid higher prices," Coia said, referring to the warehouse chain restrictions. Although exotic styles of rice are becoming increasingly popular among consumers looking for healthy and gourmet alternatives, she said they remain a relatively small portion of the market and most consumers don't buy them in bulk. "It goes to show how used to fancy foods people are getting - that they would call it 'rationing' if they can't get enough basmati rice," Mogelonsky said.[25] The move comes as U.S. rice futures hit a record high amid global food inflation, although one rice expert said the warehouse chains may be reacting less to any shortages than to stockpiling by restaurants and small stores.[27] A rise in rice prices here has led to sudden changes in buying patterns, experts said, with restaurants and other big users stocking up to avoid future hikes, thus upsetting the supply chain. Senauer said restaurants aware of soaring prices in the rice market may be exacerbating supply fears through their aggressive purchases. "I don't think this is aimed much at the typical retail consumer," he said, calling the situation "a small impact off what's being called the global food crisis."[13] The American supermarket chain Wal-Mart yesterday banned bulk sales of rice at its cash-and-carry businesses, as the global food shortage and soaring price of food began to make an impact in the largest consumer nation.[41] The world's largest retailer, Wal-Mart, is restricting sales of rice at one of its chains - the latest sign of a global shortage of the staple food.[53]

Reports have described food riots spreading from Haiti to Thailand and panic buying has begun in North America. Already this month, rice reached a record high more than 12 times on the Chicago Board of Trade. A global shortage of rice has forced countries such as China and Vietnam to curb sales.[49]

"In poorer nations, a large share of people's earnings is spent on food, and big price increases in other kinds of food are harming consumers," Childs says. To protect their supplies of rice--a staple food in much of the world--several countries have imposed export bans or sharp limits. That has led to a sharp reduction of rice available for trade in the global market. In 2007, India and Vietnam, two of the world's biggest rice exporters, reduced their rice shipments.[3] Global rice prices have more than doubled in the past year, as countries including India and Vietnam placed limits on exports to safeguard domestic supplies and keep inflation in check.[25]

David Bai came to T&T; to stock up on long-grain white rice after hearing about price spikes on the news. Given the global situation, he figures the price of rice will go up again. "Normally I buy just a 10 pound bag, but this time I'm going to buy 20 kilograms or 40 pounds," he said. Bai said the extra rice will keep him and his wife supplied for a month or two. He will keep an eye on prices. "If the price goes up I probably will get another one," he said. At the Tiffin Curry & Roti House, owner Aly Ramji cited rising basmati rice prices as a key reason why he recently hiked prices of his combination meals by 45 cents each.[20]

The store sells a dozen varieties of rice and about 20 to 30 10-pound bags of rice a day. "They're very upset," he said of his customers. "They're saying there's no jobs in Windsor. They're really upset." He has no good news to share. He said distributors have already told him to expect price increases and soon, as the international market's effects work their way to his store counter cash register.[49] The store has 26 varieties of bulk rice. She said theyve been out of jasmine rice from Thailand for weeks. Other varieties, including basmati rice, come from California where supplies are not a problem, Clevenger said. Her bulk buyer is purchasing slightly larger quantities in anticipation of people hoarding. "We have some customers whore buying 25-pound bags and special-ordering more," she said. "The customers are responding to the news and theyre stocking up." She said some people have very specific tastes in rice.[39] The restriction does not apply to Wal-Mart stores, to smaller, retail-size rice bags for sale in Sam's or to the chain's retail outlets in New Mexico and Idaho. Recent concerns of rice stockpiles may have been prompted by China, Brazil, Vietnam, India and Indonesia limiting exports to ensure sufficient supplies for their populations, said Stacy Fitzgerald-Redd, spokeswoman for USA Rice Federation.[35] British shopkeepers and the U.S. retailer Wal-Mart have rationed rice sales to protect dwindling supplies. The move by the world's biggest retailer, which owns Asda, constitutes the first time that food rationing has been introduced in the U.S. While Americans suffered some rationing during the Second World War for items such as petrol, light bulbs and stockings, they have never had to limit consumption of a key food item.[9] Stacy Fitzgerald-Redd, spokesperson for the U.S. Rice Federation based in Arlington, Va., denied there is a rice shortage, pointing out U.S. rice farmers grow and supply nearly 90 percent of the rice Americans consume each year. She said the recent action by a few large-volume wholesale and retail grocery outlets to limit the sale of rice was intended to ensure that customers have an equal opportunity to purchase rice. The action should not be a cause for alarm, she said.[36] Shortages of flour and cooking oil have surfaced in other regions, but the impacts here appear to be minimal so far, according to managers at several local outlets. Doug Homer, general manager of the Costco in Missoula, said he received direction from his home office Thursday afternoon to limit rice sales to five 50-pound bags per customer.[39] Some Costco stores already have held customers to just two bags of rice a day, but the chain doesn't plan to limit sales nationwide.[10]

The limits were imposed after some customers, apparently alarmed by the soaring prices for staple foods, made unusually large bulk purchases after the price of rice in some stores doubled in the past month.[41] Raffi Tcholakian, Phoenicia's manager, said the store, which has retail and wholesale business, has no limits on how much a customer can purchase. "I wouldn't want to do that, but I think down the line if it comes to a point that we don't see anything else coming in,. we might have to," he said. Shoppers can buy as much rice as they want at Patel Bros. in southwest Houston, owner Arvind Patel said. Houston-based Sysco, the nation's largest food distributor, has not limited the amount of rice its customers can buy, said Chris Riska, a senior director at the company. Smaller food suppliers may be putting limits on their customers.[47]

Operators of small food stores in Ottawa say rising prices -- especially for flour and rice -- are keeping away customers.[48] Shock waves from international rice prices are rippling through small Windsor food markets, as customers begin to hoard the product because they're expecting more price increases.[49] The rice rationing in the U.S. comes as the torrid pace of commodity price increases has led to violence over food supplies and costs in several nations.[3] "The price of everything -- oil, sugar -- has been going up for months, and rice has been an issue for a few weeks already. Everyone else is doing the same thing I am because they use up their rice so fast," Yang said in Mandarin. Prices for many foods, including beer, bread, coffee, pizza and rice, are rising rapidly as the nation contends with its worst bout of food inflation since 1990. The cost of groceries is climbing at an annual rate of about 5% this year.[10] In some developing countries, shortages of basic food commodities -- including rice, wheat and some oils -- have prompted protests and riots in recent months, causing concern about growing insecurity. In the U.S., runs on staples such as rice have consequences for the larger economy by adding to inflation and making it harder for the Federal Reserve to cut interest rates to ease problems in the financial and housing markets, said Milton Ezrati, an economist at investment company Lord, Abbett & Co. in Jersey City, N.J. The cost of groceries is expected to rise about 5 percent this year.[5]

Rice is planted on an estimated 549,000 acres in California, up from 534,000 acres last year, virtually all of it within 100 miles of the state Capitol and with a value to growers of about $500 million, said Tim Johnson, the president and CEO of the California Rice Commission. Johnson said growers in the state this year will get about $20 per 100 pounds of rice, twice what they earned last year. Diesel prices have increased by more than 40 percent and fertilizer has doubled in cost, he said.[12] Rice for the most actively traded July contract jumped 62 cents to $24.82 per 100 pounds on the Chicago Board of Trade, after earlier rising to a record $24.85. The cost of groceries is rising at an annual rate of about 5 percent this year, much faster than the overall rate of consumer inflation.[23]

From 2006 to 2007, food prices rose by 4 percent - the highest annual increase since 1990, according to the U.S. Department of Agriculture. This year, food prices are expected to increase by 3.5 percent to 4.5 percent as retailers pass on higher commodity and energy costs to consumers.[35] As food prices increase you will find more food planted globally. This will in turn increase supply and as countries, such as Jamaica, seek to increase local food production and also move to greater self- sufficiency, then demand will also be tempered. These two factors will combine to reduce food prices towards the end of the year. This will result in a lower rate of inflation over last year, as when you are close to the plateau of prices it is difficult to have the same rates of increase. This is logical.[30]

In the Philippines, the army distributed rice in impoverished neighborhoods to prevent tension. The World Bank warned this month that the higher food prices could push 100 million people in poorer developing countries further into poverty.[18] Globally, the rice shortage occurring amid sharply rising food prices across the board is having enormous consequences, as rice provides more than one-fifth of all calories humans consume.[12] "Customers are saying everything's going up, rice is going up, food prices are going up, gasoline is going up," Bhatia said Friday.[49]

Poon advises consumers to be watchful, but doesn't see a major crisis looming. "Which is unlike the Asian situation because I think over there it is a far more important food item than here," he said. In Ramji's case, he's trying to mitigate the situation by ordering more rice. Instead of the usual two 18-kilogram sacks of rice he orders each week, he's just ordered 20 18-kilogram bags and is seriously considering doubling it to maintain supply. "Rice is going to go up, but I can't raise my prices again -- that will affect my business," he said.[20] "Now, I'll be lucky if next week I can get it at $58," Ramji said. While the price of rice is on the rise, Poon said T&T; has no plans at this time to follow the lead of some U.S. grocers by restricting how much rice consumers can buy.[20] Prices for corn, wheat, and soybeans have blasted off in recent history. High prices for food and energy are pinching consumers -- and, it appears, driving them to discounters and bulk warehouse companies. No, it's not time to hole up in the bomb shelter and clutch your hoarded Rice Krispies treats, but there's still no way to sugarcoat it: These are indeed difficult times.[45]

Local restaurants expressed little concern about not being able to purchase rice. They were more concerned about skyrocketing prices for rice, along with those of many other foods, over the past year. The Star's Joyce Tsai, The Associated Press and the Los Angeles Times contributed to this report.[23] CALGARY - Calgary restaurants and grocery stores have had to raise prices because of rice's meteoric rise on commodity markets. Its cost surged to a record high on the Chicago Board of Trade on Thursday as bulk rice prices have tripled in the last year.[20] In Manhattan the per/sq-ft price to store a 20lb bag of rice dwarfs the cost of the rice whether $10 or $20.[1] Rice is a huge staple at The Mandarin Grill, an Asian restaurant with two Tucson locations, but it uses domestic rice. David Fung, owner of the 505 E. Grant Road location, said he increased menu prices in January, but it was because of the increase in minimum wage for his 19 employees plus the soaring cost of soybean oil. He said a 5-gallon drum of the oil went from $13 to $27. The only person he knows who regularly uses jasmine rice is his mother-in-law, but she does not use enough to be affected, even when she cooks for his family. "My kids are from the mashed potatoes era," he said.[17] Yindee Smith, owner of the Thai Market on Texas Avenue, looks out the door Thursday afternoon. Smith says the rising prices of rice have caused her to increase the price of 25 pound bags of jasmine rice from $17 two weeks ago to $27 now.[14] Smith drives to Dallas to pick up shipments of rice from a Houston supplier. In addition to high gasoline prices, she saw the price of rice jump in two weeks. She said she now pays $22 for a 25-pound bag of jasmine rice that was $17 two weeks ago. She is selling the rice for $27 a bag.[14]

Five-kg bags of jasmine rice were on sale for $2 off on Thursday and despite the bargain price of $9.99 for 4.5 kg, a dozen lonely bags were still on the shelves by midday.[40]

"I have had a few people buy four or five bags of rice, but most people are just picking up one extra in case the price goes higher." Eun admits relatives in his homeland of Korea are feeling the price pinch as prices have gone up 300 per cent to about $45 for an 18-kg bag.[40] When I mentioned a four-bagger in the headline, I literally meant four bags of rice. That's all you're currently allowed to buy at Wal-Mart's (NYSE: WMT ) Sam's Club.[45] Wal -Mart announced Wednesday that Sam's Club customer's can purchase up to four bags of certain kinds of rice. "It certainly does not make me feel very good about it, but we are watching what we are consuming and we are trying to do the best we can," explained one customer.[54]

Sam's Club said it had temporarily placed limits of four 20-pound (nine-kilogram) bags a person for jasmine, basmati, and other long-grain white rice types.[44] At Sam's Club, for example, shoppers are limited to four 20-pound bags of basmati, jasmine and long-grain white rice.[47]

Sam's Club said the limits on jasmine, basmati and long-grain rice purchases are because of "recent supply-and-demand trends."[13]

Sam's Club, including the recently opened store in Danville, is limiting the amount of bulk rice members can purchase at all its locations.[19] Ted Lucas, a manager at the local Sam's Club, said the store provides rice for some restaurants and bakeries in town, as well as individual customers like the McMillans.[14] Sam's Club is limiting the amount of certain kinds of rice customers can buy, but its sibling Wal-Mart Supercenter is not.[47] Warehouse retailer Sam's Club is limiting how much of certain types of rice purchasers can buy amid tight supplies and soaring demand.[23] Noting that Sam's Club still allows members to buy high levels of rice, Chris Tripoli, president of A' la Carte Foodservice Consulting Group, had another theory. A "low-price leader" like Sam's Club is concerned that people will buy huge amounts of rice and resell it, preventing other Sam's Club members from getting rice, he said.[47] On average, a typical Sam's Club business member does not buy more than 80 pounds of rice in one visit. This temporary cap is intended to ensure there is plenty of rice for all our members.[36]

Lucky's parents own Phou Bia, a local Hmong grocery store in Wausau. He says families typically come in and buy 2 of these 100 pound bags at a time, but now that demand has dramatically increased. "We eat it everyday, every meal, so it does go by quickly for a 100 pound bag and so when people come in, usually they buy a bag or two to last them a month or two depending on the size of the family and now it's gone up to 5, 7, 10 bags at a time, just stocking up," says Lucky Her, the Owner's son. It all started a few weeks ago when wholesalers in St. Paul ran out of rice.[38] If you shop at Costco Wholesale Corp. in Columbus, you can't buy more than 10 bags of rice at a time. That limit started six weeks ago so that every shopper who wants rice can buy some, said Dave Feldkamp, the store's general manager.[5] Costco leaves it up to store managers to set limits, if needed. Anyone who buys rice regularly is stocking up now, while infrequent users aren't because they can substitute something else if need be, said Kit Yarrow, professor of business and psychology at Golden Gate University in San Francisco. "That's why warehouses are limiting the number of huge bags somebody can buy but regular grocers aren't," she said.[47]

The store is limiting the number of large bags customers may buy because of a rice shortage.[17]

By 3 p.m. Thursday, the Costco in Moreno Valley was out of 20-pound bags of basmati. A store employee said purchases that day were being temporarily limited to two bags per customer, and he did not know when that type of rice would be restocked.[25] Feagai got one bag of rice from the Hawaii Kai Costco, which, like other stores around Hawaii, is not limiting rice purchases. His wife said they bought enough to last a few days.[55]

Earlier in the day, Michael Yang, manager of Hawaiian barbecue restaurants in Pico Rivera and West Covina, had decided it was time to stock up. He bought 46 bags of medium-grain rice, 50 pounds each, at the Alhambra Costco and loaded them into his white van. He paid $15.39 each, which he called a bargain compared with premium brands from Thailand that have recently nearly doubled in price to $40 for a 50-pound bag.[10] Naoto Suzuki, co-owner of the Katana Japanese restaurant, and Jaromporn Torit, manager of the Thai Thai restaurant in downtown Wilkes-Barre, are paying $5 to $6 more for 25 pounds of rice. Business is suffering from a stagnant economy, rising prices of other food and fuel and fewer people being able to afford to eat out, they said.[36] "I believe we need to be prepared," said Adams. "And if people don't have any kind of a three-month or a year supply of food, they are going to have to hurry because prices are going up on wheat, rice and other staples."[35] There are few signs of a shortage that would affect the average consumer. They were more concerned about skyrocketing prices for rice, along with those of many other foods, over the past year.[23] Some consumers have started hoarding rice, the food staple for half the world as prices soar and supplies shrink.[21] Rising prices and shrinking supplies have led at least one local food store and some national chains to ration imported rice.[17]

"Its just that people think they have to stock up," Homer said. Costco has moderately increased orders of long- and short-grain rice from domestic suppliers, but he said imported rice is becoming slightly more difficult to obtain. In some stores in Californias nine-county Bay Area and other regions across the country, supplies of rice and flour were limited earlier this week by Costco Wholesale Corp., the largest warehouse club operator in the nation.[39] Fans of certain long-grain and imported varieties of rice, such as basmati and jasmine, may be feeling squeezed this week if they usually buy in bulk at warehouse club stores.[25]

Indian basmati rice prices are up 182%, to $2,400 a ton, so far in April, compared to $850 per ton a year ago, while Thai jasmine has more than doubled in price since last year, from $559 per ton to $1,125.[3] The international price of rice has risen about 68 percent since the beginning of the year, and rough rice for July delivery reached $24.745 per 100 pounds for the first time, reports the BBC.[6]

T&T; Supermarket marketing manager Herman Poon told The Sun that rice from Thailand, the world's largest rice exporter, has gone up in price 30 per cent in the past month and 100 per cent in the past year. So far the full brunt of those price increases has not shown up on store shelves.[40] In that period, the price of a 25-pound bag of long-grain rice went up $1, an increase of 4 cents per pound.[5] The limitations on rice are on bags that are 20 pounds or larger. Restaurateurs are among those who buy rice at big-box retailers. Several in the Bay Area said they haven't raised menu prices despite their cost increases.[12] Global shortages have not changed prices at Ottawa's Shanghai Restaurant, said manager Dave Kwan, but business is starting to suffer. "All costs are going up, not just rice," he said.[48] Though the federation says there is no shortage of rice, people are stocking up to try to beat the price going any higher. As for Jung, she is not stockpiling rice but closely watching the rising costs. If things continue the way they are, she will have to do something she says she has never done before.[32]

There is no rice shortage in the U.S., but rice prices are at record highs globally, leading to riots in some poor countries and threats by some producers to curb exports.[13] The headlines read as if they come from far-off, struggling lands, but, no, concerns about hoarding rice and a shortage of flour have hit businesses in America at a time of skyrocketing agricultural prices. Commercial bakers say they are stocking up on specialty rye and gluten flour because of fear that supplies are dwindling.[13] Overall, prices for rice have increased about 15 percent in the last few months. "If they have a favorite kind of rice, they want to make sure they have enough of it," Clevenger said. She said there hasnt been obvious hoarding or shortages of flour, although prices have almost doubled with the worldwide shortage. Am Penny, manager of Sa-Wad-Dee Authentic Thai Restaurant, said prices have increased dramatically since the beginning of the month from their two suppliers. The jasmine and long-grain rice they dish up have been affected. "It is increasing like 50 percent," she said.[39] "I try to sell more to keep customers coming," Zhenz said. "If it keeps going like this, we've got to shut down the business." Reuben Hyman, owner of Sugami restaurant and sushi bar, said rice prices for him have risen about 20 percent in the last three to four months.[34] "The rice prices did go up almost like 20, 25 percent the last year or so," L&L; President Eddie Flores said.[55]

Rice futures hit a record high due to surging world demand, particularly in developing countries, and poor crop yields. The price of rice, which is eaten by almost half of the world's population, has climbed 70 percent so far this year.[15] In the U.S., half of the domestic rice crop meets 88 percent of the country's demand, said David Coia, a spokesman with the USA Rice Federation in Arlington, Virginia. "When global prices rise as quickly as they have, as rice has, and as recently happened with wheat, you are going to have some concerns, and hysteria in some cases that is uncalled for,'' Ephraim Leibtag, an economist with the U.S. Department of Agriculture in Washington, said in a telephone interview.[21] The U.S. rice industry is "confident there's enough rice in the U.S. to meet domestic demand as well the demand of our traditional export customers," Cummings said. He added, due to tight global supplies and higher production costs "it's fair to say that we don't see any slackening of cost pressure side." Cummings also said his group had not seen any across-the-board change in demand.[22] The rationing steps came as the price of rice has surged worldwide due to the rising costs of energy and fertilizers, droughts in some rice producing countries and higher demand. Some countries have taken drastic steps such as limiting or suspending rice exports to ensure they meet domestic demand.[18]

Higher energy costs, which has lead to higher food costs, have caused the price of rice to soar, leading to food riots in Haiti and Thailand.[8] '''The more people who participate in the co-op, the larger volume we can purchase and the better deals we get," said project director George Neckel. Once a month, Neckel puts in a big order -- all these boxes are just the meat going out this month. People pick up their food at 47 different sites around Utah. On pick-up day once a month, members pick up a small paper that lists all the things included in their share. For instance, this month they have Cornish game hens, ham steaks, beef and hamburger, not to mention a variety of fruits and vegetables, beans and a loaf of fresh-baked bread." That'''s all for $21 -- saving 1/3 to half off grocery store prices. Volunteers are the key -- they do the work to save on labor costs.[33] To compound matters, rising fuel prices are increasing the costs of transporting food around the globe -- and we all pay the consequences at the grocery store.[2]

Paul McNamara, a professor in the University of Illinois' Department of Agriculture and Consumer Economics, said the situation at Costco and Sam's was unusual because when supplies tighten, the most common response is to keep raising prices, not limit sales. He thinks it's a short-term situation most likely connected to a fear of a disruption in the companies' supply chain. "It does suggest we are in a pretty strange food market," McNamara said. "Americans are not used to this." [13] Beyond the limitations on rice sales by the two large U.S. retailers, Patel said he expects the crisis to increase demand for food stamps and food aid programs in this country. "And I think we ultimately have to come to terms with the fact that meat is going to be a lot more expensive," he said. This will lead to a shift in diet "to a more sustainable way of eating," he predicted, or at the least a "democratic conversation" about diet that is not currently taking place. Experts say it is possible rice consumers could switch to medium-grain rice like that grown in California as the crisis worsens, but they would have to overcome cultural loyalties - something not easily done.[12] As fears of a global food shortage sweep the nation, some Missoula grocers and food warehouses have started rationing rice sales.[39]

The supply problems with flour and rice are connected in different ways to dramatic price increases tied to global shifts in the commodity markets, where prices of corn, wheat, rice and soybeans have hit record levels in recent months.[13] Domestic rice, which comes mainly from California, Texas and Arkansas, has stable prices and a steady supply, local food distributors say.[17] At Food Conspiracy Co-op at 412 N. Fourth Ave., domestic rice prices have actually gone down. "It's only by 2 cents," said outreach coordinator Torey Ligon, "but in the United States, we still produce more rice than we consume.[17] The rise in rice prices is just the latest of the world's major food commodities to experience a hike in prices. Others include wheat, corn, soy and dairy products.[6] Shock waves from international rice prices are rippling through small Windsor food.[49]

Rice prices have soared from $550 a ton in mid-February to about $800 a ton, said Nathan Childs, an economist and rice expert with the U.S. Department of Agriculture.[36] Prices have soared to eye-popping levels in recent weeks: U.S. long grain rice has doubled, to $800 per ton.[3] Prices for Thai and U.S. rice are being adjusted upwards 10 to 20 per cent at T&T; Supermarket Inc. in Calgary, said Herman Poon, the grocer's public affairs manager. "We just started adjusting prices the beginning of this week," he said.[20]

Rice prices have been on the rise, with rough rice scheduled for July delivery at a contract high of $25.70 per 100 pounds, compared to the current price of $24.23 for that amount, according to The Associated Press.[7] The Chamber of Milling’s chief executive officer Jannie de Villiers says: “We have seen India and I think Pakistan, and some other rice supplier countries. They have put an export ban on it, to ensure that they have enough locally, so for South Africa this is bad news in terms of rice prices.[50] Thailand's rice experts will drop by half, reports Thai news source The Nation from Bangkok. High prices have caused importing countries to hold their purchases.[6]

News agencies are starting to talk about food shortages, and rice is a big focus of the problem in many countries right now.[45] Internationally, shortages of basic commodities -- including rice, wheat and some oils -- have led to protests and riots in recent months, prompting concern about food security in many poor countries.[10]

With Sam's Club's rice rationing announcement, Simpson is beginning to worry about availability of staple food. "My first thought was, 'Oh my goodness, I knew they did that in the Depression Era." According to the government, food inflation from last March to this March is 4.5%.[52] Shoppers at Sam's Club glanced at the sign, picked up a large bag or two of rice and moved on, grateful that their favorite type is still on the shelves. "It cooks well and smells great," Eualice McMillan said as her husband, Earle, picked up a couple of 20-pound bags of Royal Basmati Rice.[14] Sam's Club, Wal-Mart's cash-and-carry division, says customers can buy a maximum of four bags per visit.[53] "Yes, it concerns me," one shopper told Action News. Valley shoppers stock up as usual at places like Sam's Club and Costco but customers are becoming worried as stores across the country limit its supplies.[54] Sam's Club, owned by Wal-Mart Stores Inc., blamed the new limits on a "supply and demand trend" and said it is working with suppliers "to ensure we are in stock."[5] Sam's Club has 593 stores compared with 2,523 Wal-Mart Supercenters that combine a full grocery section with general merchandise. Costco has 534 warehouses worldwide, most of them in the United States. Wal-Mart spokeswoman Deisha Galberth said Wal-Mart stores have no plans for restrictions similar to those at Sam's Club.[27]

Sam's Club, which has 593 stores, provides bulk food to small vendors. Grocery stores in Danville, including Piggly Wiggly, Food Lion and Harris Teeter, have not changed their sales policies in light of Wal-Mart's move, store representatives said Thursday.[19]

Seattle-based Costco Wholesale Corp. has set limits in some stores on bulk rice purchases. It hasn't restricted the Myrtle Beach store or any others in the Southeast region, but store managers can limit sales on a case-by-case basis, Cola said.[34] Some of Costco Wholesale Corp.' s stores, including locations in California, have put limits on sales of rice and flour, Chief Executive Officer James Sinegal told Reuters yesterday.[21]

Costco Wholesale Corp. (COST) indicated it had decided to limit bulk rice purchases in some stores.[22]

There were many shopping carts with a bag or two of rice. Others made bigger purchases. "The guy that was in front of us, he said he had a restaurant, so he picked up 15 to 16 bags that was in there," Feagai said. While some people looked like they were stocking up, there were a few shoppers who said they are not worried about rice yet. With rice costs going up you may soon see those two scoops on a plate lunch cost more. This material may not be published, broadcast, rewritten or redistributed.[55] A bag is expected to cost 10 to 15 percent more in the coming weeks. Restaurants like L&L;, which use lots of rice in their plate lunches, are bracing for tough times ahead.[55]

At the busy Hoa Viet store, 465 Wyandotte St. W., shoppers have started buying in recent days eight to 10 36-pound bags at a time. They sold for $26 each on Friday -- up one dollar from last week and $5 from only two months ago. "They're saying $30 in a few more weeks," Irene Tran said of the Thai jasmine rice.[49] Costco's east Vancouver store was loaded with eight full pallets of rice in five-, eight- and 11-kg bags, the biggest bags at $16.79.[40]

If stores didn't limit the number of bags people could buy, consumers would continue to stock up and store rice, forcing stores to order more.[46] "We may be forced to limit supplies, but we havent been given direction to ration supplies" yet from the corporate offices, Mounts said. The managers of smaller Wal-Mart stores in Polson and Missoula said they havent seen any stockpiling of flour and rice by consumers.[39] In reality, there's not a rice shortage, just psychology at work. "When a consumer goes to the store and can't get something or sees there's a limit, they start to panic," said Ellram, who expects the industry to regulate itself in a couple of months. "It can be one incident that just amplifies as is moves through the supply chain."[46]

USA Rice Federation spokesman David Coia said there is no rice shortage in the United States. "It's possible that small restaurants and bodega-type neighborhood stores may be purchasing rice in larger quantities than they do typically to avoid higher prices," Coia said about the warehouse chain restrictions.[27] U.S. rice producers insisted Thursday that there is no real shortage. Area restaurant owners, supermarkets, businesses and relief agencies who consider rice an essential ingredient to both success and survival begged to differ.[43] There is plenty of domestic rice, but Asian immigrants and Asian restaurants don't like the sticky CA Rose or "short grained" AR/TX stuff. This shortage has nothing to do with U.S. corn or ethanol production.[9]

"However, like our competitors, we're just taking the precautionary step of limiting sales of the very large 20-pound bags of imported jasmine, basmati and long grain white rice." [19] The sign posted above wooden pallets covered with rice bags stated that customers would be limited to four bags of imported jasmine, basmati and long grain white rice.[14] The temporary restriction applies to jasmine, basmati and long-grain white rice, and does not apply to retail-sized bags.[34]

In Britain rice is being rationed by shopkeepers in Asian neighbourhoods to prevent hoarding. Tilda, the biggest importer of basmati rice, said that its buyers -- who sell to the curry and Chinese restaurant trade as well as to families -- were restricting customers to two bags per person. "It is happening in the cash-and-carries," said Jonathan Calland, a company executive.[9] As co-owner of Inca Mexican Restaurant, 2413 S. College Ave., Gutierrez is now spending $7 more per 50-pound bag for the grain that is a main ingredient in many of his restaurant's dishes. He's trying to stock up, but realizes that won't solve the problem. "As soon as I run out of (rice), I'll run into the same thing," he said.[46] The 17th Street Market, 840 E. 17th St., stocks more than 20 types of imported rice and has set a limit of three bags of 5 pounds or more per sale, said spokeswoman Bonnie Brooks.[17] Retail giant Wal-Mart has imposed some broad limits on the sales of rice in the U.S., but no restrictions are in place in Canada.[8] The chain has no Oregon stores. Some Costco stores also have begun limiting sales, and some wholesalers say they will not take on any new customers until the strain on supply eases. The ripple effect of that decision finally started to be felt in U.S. stores this week.[43]

"We don't have a timeline on when that decision will be made." Costco Salt Lake City Store Manager Kevin Campbell declined to identify specific restrictions at his store or Utah's eight other locations, but he did say that customers would not be allowed to buy "a pallet" of rice.[35] According to Costco officials, the biggest commodity affected right now is rice but do not be surprised to see cooking oil, flour and corn on the list of limited supplies. "It was hard for us during World War II, we had to have tickets for sugar, for flour, not flour but shortening and it was difficult," said one customer. Some Americans have seen this before but not affecting major staples like rice and corn, forcing folks to make a change. "It is a matter of being more conscious and sensible about what your eating and what you are doing with your money," said one customer.[54] "I went to Costco to get 50 pounds of rice last week and it just wasn't there," said Jessica Grimmer, whose Bridgeport Village store, Pudding on the Rice, is keyed to the grain. "I was able to get some at another store, but it's very, very scary to think what would happen if supplies just dried up."[43]

HONOLULU -- Reports of rising prices and lower supplies of rice have prompted many people to buy more of it.[55] The reason retailers are holding back is that some people are hoarding rice in fear of rising prices, said Greg Cola, buyer for Costco's southeast region. "It's selling through so fast that we are occasionally running out of stock," he said.[34] Prices have been stable at area Costco and Wal-Mart stores, but worldwide shortages have affected smaller specialty food shoppers. "They can't stock up, it's already too expensive," said Chit Singh, owner of Pure Springs Indian grocery store on Somerset Street.[48] With food prices rising, customers have been buying basic goods in bulk. Wal-Mart said it was not restricting the amounts of flour or oil customers can purchase "at this time". The prices of soybeans, corn and wheat have also soared and are currently near their all-time peaks.[53] Food prices are rising at an annual rate of 5 percent, the report said. "It is like a run on the bank," Costco's Chief Financial Officer Richard Galanti told the Times.[24] We are paying 30p to 40p more for a chicken than we were a year ago." Virginia Ndungu, a 55-year-old mother of eight, watches her daughter stir a blackened pot of cornmeal gruel in front of a tent in a refugee camp where they have lived since January (Nick Wadhams writes). This is tonight's meal, and there will be no bread, no meat, and no tea. Camps like this are the front line in the global crunch over rising food prices.[9] Food prices have risen sharply this year, driven by increased global demand, drought and biofuel production.[22] Food prices across the world have rocketed in the past two years, driven by increased demand for corn -- the grain that is fermented to produce ethanol, the biofuel.[9]

Food prices in the U.S. and elsewhere in the world have risen significantly in the past year.[25] The March consumer price index reported food prices up 4.5% versus a year ago.[22] The Bureau of Labor Statistics index of consumer prices for rice, pasta and cornmeal rose 12.1 percent in March over a year earlier.[21]

What adds to the price spike — and the run on specialty products like basmati — is that rice consumers tend to be very loyal.[27] Owners of restaurants, such as the Inca Mexican Restaurant in Fort Collins, are feeling a pinch from rising rice prices, but experts warn consumers shouldn't panic.[46] "Of course we worry." Chang said the increase in rice prices won't drive up menu prices at her restaurants, where rice comes with practically every dish.[5]

WILKES-BARRE - Local restaurant owners are feeling the pinch from the rising price of rice and other food.[36] "We're Filipino, we have to eat rice," said Cecilia Jamison, a Windsor factory worker shopping at Hoa Viet Thursday. Whatever the price, she said, "You still eat rice. It's a staple food." She put the price situation in perspective saying, "My country, they're queuing up for rice."[49] What's driving the price of rice so high are widespread worries about food inflation in many rice-growing nations.[3] The move comes as U.S. rice futures hit a record high amid global food inflation.[29] After hearing about a global run on food, Jackie Adams picked up a 25-pound bag of California-grown rice for herself and three more bags for her children. While the West Valley City woman was shopping, she also stocked up on a big bag of pinto beans.[35] "The problem is not quite as dire as it sounds, even if it does carry global implications," says Alyce Lomax at The Motley Fool, pointing out that it is only the 20-pound bags of rice that are being rationed by stores.[6]

We're always going to have to plan ahead a little more," says Lucky. Lucky says they are not limiting the number of rice bags you can purchase at their store.[38] We believe limiting rice purchases to four bags per visit is consistent with the needs of the majority of our members, including many restaurants….[3]

Costco has no corporate policy on limiting rice purchases, said Robert Murvin, the company's assistant merchandise manager for Texas.[47]

At the Costco in San Francisco, rice is all the rage. Not long after the 10 a.m. opening on Apr. 24, the warehouse club was well on its way to selling out the day's supply of Thai jasmine rice.[3] "Things seem stable" at least so far, said Ron Damiani, with Costco's Canadian head office in Ottawa. At the small Bhatia International Market in Forest Glade, Jagmohan Bhatia doesn't have to read the news about rice, he's hearing all about it from customers.[49]

The measure appears aimed at preventing over-stocking among customers concerned by the surging prices of commodities worldwide. Small restaurants and businesses fill their freezers and pantries with products from big-box retailers such as Sam's Club and Costco.[18] The warehouse chain caters heavily to small businesses, including restaurants. Sam's Club spokeswoman Kristy Reed said she could not comment on whether the problem was caused by short supplies or by customers stocking up in anticipation of higher prices.[27] VOICEOVER: A Sam's Club spokeswoman could not say whether the problem was caused by short supplies or by customers stocking up in anticipation of higher prices. LESTER BROWN, EARTH POLICY INSTITUTE: This is not very common.[29]

Canadians have been largely insulated from soaring international prices by our strong dollar. The food industry is too competitive for most stores to risk raising prices too much, Mr. Scott said, so Canadian customers will likely pay only a little more for their future groceries. Grocery stores have not reported any trouble getting the supplies they need, he said. This summer's crops will dictate how well store owners can keep their shelves stocked.[48] Some of the bulk purchasers are said to be restaurants and corner stores that want to beat price increases. A Wall Street Journal financial columnist recommended that investors load up on food because food prices are increasing faster than any return they're likely to get in a money market fund or CD.[4] If food shortages and rationing is to be avoided, food prices need to increase so farmers get a reasonable return and are encouraged to produce more. FOOD SUPPLY SECURITY are the magic words people want to hear from their leaders.[9] "You are seeing the return of the food riot, one of the oldest forms of collective action," said Raj Patel, a food policy specialist and visiting scholar at the UC Berkeley Center for African Studies. He noted that the Roman statesman Cicero was once chased from his house because he had food and the intruders didn't. "And that happens because people do not have access to food at prices they can afford," Patel said. "That is why they take to the streets." In London this week, the executive director of the World Food Program, Josette Sheeran, warned that more than 100 million people will be pushed into poverty by a "silent tsunami" of sharply rising food prices. "This is the new face of hunger - the millions of people who were not in the urgent hunger category six months ago but now are," Sheeran said.[12] The German chain is benefiting from increases in food prices, welcoming customers who previously shopped at Sainsbury's or Somerfield. Paul and Tracy Jones are new faces at Aldi, having driven six miles from their home in Corsham. They have a monthly food budget of £400 for themselves and their three children.[9]

The BBC's guide to the cost of food provides facts and figures charting the global rise of food prices.[6] The move comes as the prices of grains and other basic foodstuffs reach record highs amid mounting concerns about tight supplies and growing demand part of broader global inflation in food costs.[23]

According to the U.S. Rice Federation, the trouble started when rising costs of gas and fertilizer drove up the price of rice worldwide. [32] No other items are affected. Suzuki and Torit say they are not having trouble getting rice, but are struggling to pay rising costs. Hopefully, they will bring the price down, Torit said.[36] Some experts believe the price of rice has spiked because of rising fuel costs and the lack of rain in areas that produce rice.[26] Flores said one reason for the spike is the sky rocketing price of oil. That hits the cost of transporting the rice. He said there is another reason.[55] The USA Rice Federation's Web site reported that numerous factors are behind the increased prices, including farmers facing high fertilizer and fuel costs, and higher expenses for transportation and shipping.[19]

Rice prices in the United States and globally have more than doubled in the last year.[39] Hornell isn't so sure. Drought-stricken Australia has been importing rice from the United States for five years to keep its domestic brands alive as they have little locally grown product to sell. American rice growers are in the process of trying to figure out how much they have from the last crop year before they set a price, Hornell explained.[40]

Everything from what you eat to where you live seems to be skyrocketing in price. The price of rice has steadily increased this year.[52] In any event I have always believed that coal is a better option. Although we have seen that the prices of rice and corn commodities have increased, we have also seen that the prices of live cattle and milk, for example, have decreased this year.[30]

Rice has more than doubled in the past year. Rice futures for July delivery rose 2.6 percent in Chicago today, touching a record $24.85 per 100 pounds, and have climbed 26 percent this month. Wheat, corn and soybeans gained to records this year, spurring social unrest in Haiti and Egypt.[21] "When you see a staple for your business or your family double in price over the last year, you want to minimize future price increases," said Tim Johnson, president-CEO of the California Rice Commission, which represents growers and millers of rice in the state.[23] The European Union also has set targets for biofuel production, which it now may reconsider in the wake of worldwide riots that coincided with the prices of rice, corn and wheat doubling during the past year.[2] World rice stocks are the lowest in 20 years due in part to poor crop yields in Thailand and riots have broken out over rising prices in Africa and Haiti.[40] Ligon said 90 percent of the 325 pounds of rice the store stocks weekly comes from California, with 9 percent from Texas and 1 percent from Arkansas. What's killing the Co-op, she said, is the high price of wheat. "Our bagel prices recently went up from the bagel supplier," she said, adding that the bakery they use has also boosted its prices.[17] The price of certain types of rice rose by 50 percent in recent months, causing tension in the poorest parts of the world. The high price of rice sparked violent protests in Haiti earlier this month, forcing the government to issue an order to lower prices.[18]

The shortage reflects restrictions on exports by major rice producers, notably India, Vietnam and Egypt, followed on Wednesday by Brazil, causing imbalance in world markets. These nations acted to ensure adequate domestic supplies amid rising world prices for preferable varieties of long-grain rice.[12] THE price of rice will rise dramatically in the next two months. This is after the price of the staple grain more than doubled over the last three months due to export bans in India and Pakistan. South Africa imports all of its rice supplies.[50] "I think there are some fundamental market conditions that are causing the price to increase, basic supply-and-demand concerns," Ciccarello said. "What is unknown is how much all this hype is driving it as well." It's a combination of a general increase in commodity prices, including corn and wheat, and poor harvests in Asia, a major producer of rice. "They have shut a lot of their exports down." Information from The Associated Press was used in this report.[16]

"We are sitting right now with orders in California that are all on hold waiting for the price to be set." He said the delays are starting to make Sonray's shelves, normally laden with Kokuho Rose and specialty brown rice, look a little barren. Hornell said retailers who used to ask for a guaranteed price for six weeks on their orders are now settling for one week.[40] Vigo can't get all the Asian rice varieties it wants and is raising some prices because of the volatile market. He said, overall, "We are getting enough right now."[16] There's one problem with a family stocking up on rice in great bulk. What happens when the price goes down? One popular Web site claims to have more than 440 recipes for fixing rice, and you're going to have to eat every one of them to get through all that rice.[4]

The U.S., through Congress, has mandated that 25 per cent of corn production should go to biofuel production. What this has done is reduced the supply of corn for food consumption, placing pressure on the price. Now all my logical senses tell me that faced with food shortages or higher energy prices this mandate will be lifted, as eating is always going to be more important than driving.[30] U.S. dollar recovery The slow down in prices will result also from a stronger U.S. dollar as well as equilibrium being achieved between demand and supply for food.[30]

The slow down will result because of two reasons. The first is that the base on which the inflation rate is computed will be larger, thus the rate of increase will be lower, and the second, in my view, is that towards the third to fourth quarter of this year, oil and commodity prices will start to back off. The greatest threat to higher local inflation is in fact something that no one has been speaking of, that is the threat to our local food supply from a natural disaster such as a hurricane.[30] The price of soybean and corn feed has skyrocketed in the past year, cutting into profits at producers like Tyson Foods Inc. (nyse: TSN - news - people ) and Pilgrim's Pride (nyse: PPC - news - people ) Corp.[15] On the news it stated that in 3 years, gas prices will be over $7.00 a gallon. It will be over $4.00 by summer. On a little bit of a brighter note, just a little, Here it is: Those tax rebates will start showing up in people's bank accounts Monday, four days early. For those who didn't select direct deposit on their tax returns, the checks will begin hitting the mail May 9, a full week ahead of schedule.[28]

"Even that didn't cover the rate that the rice went up to," Ramji said. Four years ago, when Tiffin first opened, an 18-kilogram sack of basmati rice was $38, he said.[20] The runup has been especially sharp since January, when Thai jasmine rice was trading at $625 and basmati at $1,300 per ton, respectively.[3] The market is highly segmented by type of rice and quality, and buyers will generally not take a substitute, Childs said. "California's had a pretty good crop, but basmati and jasmine consumers have a history of not switching," he said. "They could always have bought cheaper Calrose. They don't." The Associated Press and Bloomberg News contributed to this report.[25] The market is highly segmented by type of rice and quality, and buyers will generally not take a substitute, Childs said. "California's had a pretty good crop, but basmati and jasmine consumers have a history of not switching," he said. "They could always have bought cheaper Calrose. They don't." Associated Press writers Stevenson Jacobs and Verena Dobnik in New York, Juliana Barbassa in San Francisco, Dan Catchpole in Seattle and Rodrique Ngowi in Boston contributed to this report.[27]

According to Kelly Matthews, executive vice president and economist at Wells Fargo Economic Department, the CPI "assumes you buy the exact same things month after month. It's a composition of what's included in a market basket that is purchased by the typical or average consumer." The U.S. exports half its rice production, capturing 14 percent of the world market. [35] According to the USA Rice Federation, U.S. rice farmers grow and supply almost 90 percent of the rice that Americans consume each year. "I think it's a story that will die down pretty quick," said Kim Staking, an assistant professor at CSU who previously spent 16 years studying economic development, most recently in Latin America.[46] According to the U.S. Rice Federation, world rice consumption has increased 40 percent over the past 30 years.[32]

"Vietnam and Thailand have had record rice crops in the past year, and India too has had bumper crops," says Nathan Childs, a senior economist who follows the global rice market at the Economic Research Service of the U.S. Agriculture Dept.[3]

Howard Grossman, a consultant who served as executive director of the Economic Development Council of Northeastern Pennsylvania for 30 years, said the rising price of rice is symptomatic of a larger problem stemming from an economy spiraling out of control because of the oil situation.[36] Long term, Eun says not to worry because price hikes are being driven by high demand rather than shortages. "When the next crop of rice comes in Laos and Thailand it will be over," he said.[40] Though rice prices are on the rise worldwide, locally, shortages of the product have not yet hit.[7] Worldwide shortages in rice have resulted in higher prices and even rationing in some cases.[26]

Rice-producing countries like Vietnam and India have curbed exports to keep domestic prices under control and there are fears that Thailand - the world's largest rice exporter - could follow suit.[53] Increasing demand and export cutbacks have caused the price of rice to skyrocket.[47]

Record rice and wheat prices were clearly reflected in my family's recent $350 grocery bill for mostly grain-based and dairy products.[2] Rice prices have been hitting record highs recently on worries about tight supplies.[42] Globally, rice prices are starting to hit record highs, following a host of other commodities.[3] Yindee Smith, owner of the Thai Market on Texas Avenue, is feeling the pinch as rice prices climb.[14]

"The price of rice has doubled, bread too. Tomatoes have tripled and black beans are 30 per cent more expensive," she said.[9] Every few days, Mario Gutierrez orders more than 600 pounds of rice. Every time, he watches the price steadily climb.[46] Last Update: 4/25/2008 7:54:14 PM Author: Jake Wade It may sound a little unusual, but some stores are starting to limit how much rice you can buy at one time.[32] Thursday, two major chain stores are putting a limit on how much rice you can buy. The announcement has many worried, saying this is bringing back memories of the rationing during the great depression.[52]

If someone wants to buy a truckload of rice, the manager might say no depending on the supply available, Cola said. "Typically, we try not to limit," he said.[34]

Rice is the latest in a string of commodities to hit record highs, prompting at least two retailers this week to restrict how much customers can buy.[15] "Rice has been an issue for a few weeks already," California restaurant owner Michael Yang told the Times after purchasing 46 bags of rice, weighing 50 pounds each.[24] Rice is a staple food for Asian and Hmong families. They started hearing about the shortage a couple weeks ago, but now they're seeing it directly.[38] "What started with a shortage in Thailand and a typhoon in Bangladesh is now putting tremendous pressure on domestically produced rice," said Rich Lenardson, manager of Sun Food Service Brokerage in Portland.[43] Riots are erupting in Haiti and Egypt over a shortage of rice and other food, caused in part by unexpected weather in Southeast Asia and Australia. In search of rice, Hector Lebron and his wife, Sandra, pulled their shopping cart to the inside wall of Abuela's Market on Sligh Avenue on Thursday morning.[16]

The market caters to personnel at nearby Dyess Air Force Base. Smith carries other Thai foods and items, and she hopes those sales will make up for what is lost in rice sales.[14] Some local stores have started to ration rice sales, and relief agencies fear a new crisis in trying to feed the world's hungry.[43] At some stores, there's been a definite increase in the sale of rice, while other stores are showing normal sales.[20]

"I've sold rice since 1988 and I've never seen the kind of price increases we've seen in the past month or so here."[43] I haven't had to yet, but we're looking at new menus right now." Restaurant owners attributed the price increases to rising fuel costs, but they added there is only so much they are willing to pass on to their customers.[31] Restaurant owners across the country are feeling the effect of the rising cost of rice. Jung opened her Macon spot 9 years ago.[32] L&L; paid $18 for a 50-pound bag of rice last month. Those bags now cost $21 this month.[55] Nelson Sai, assistant manager of an Asian market, G & L Import-Export Corporation, 4828 E. 22nd St., said a 50-pound bag of Thai jasmine rice has recently gone from $25 to $40.[17] Lebron hoisted a bag of Falcon Rice, $7.29, and tossed it into a shopping cart.[16]

Alyce Lomax at The Motley Fool points out that it is only the 20-pound bags of rice that are being rationed by stores.[6] "In the Twin Cities, there aren't that many bags of rice available in the wholesale stores, so some of the local stores have to order rice directly from California," says Peter Yang, Executive Director of Wausau's Hmong Association.[38] A shelf at the same store remained stacked high with similar-size bags of domestic white rice.[25]

Across the country, larger retail stores are beginning to limit the purchase of rice and are not carrying as wide a variety.[7] By midafternoon Wednesday, the Costco in Alhambra -- which had not placed limits on purchases -- said it had run out of rice.[10] "We're going to have to come up with solution to how we limit or don't limit bulk rice purchases," said Costco spokeswoman Deb Cain.[35]

Costco (Nasdaq: COST ) is mulling a similar measure. These are tough times, I know, but a run on rice is not what I expected.[45] Sam's Club and Costco are participating in the rationing, but lucky for us in Idaho, we are one of two exempt states. The Simpson family from Ammon is somewhat shielded from the rising cost of food because they have a whole room for food storage in their basement. "Our neighbors tease us that it's the Simpson's mini mart," says Trudi Simpson.[52] According to Sam's Club, Idaho is not included in the rice rationing because of legal reasons. They wouldn't elaborate more than to say there is a law against it here.[52] "We currently have plenty of rice for Sam's Club members," the release states.[19] "We currently have plenty of rice for Sam's Club Members," the company said in a statement.[44]

At the Sam's Club in Riverside on Thursday, for instance, the limit was four 20-pound bags of basmati.[25] A statement issued by Sam's Club said the limits were imposed "due to recent supply and demand trends".[41] Sam's Club, the membership warehouse division of Wal-Mart, said Wednesday it took action because of "recent supply and demand trends."[23] The rationing policy was in effect Thursday at Sam's Clubs nationwide because of what the chain calls "recent supply and demand trends."[14]

Sam's Club and Costco have put limits on purchases in locations around the country.[55]

The broader chain of Wal-Mart stores has no plans to limit food purchases, however.[27] Even at ethnic grocers like Patel Bros. or Phoenicia, where demand for rice is relatively greater, there are no restrictions on purchases.[47] The relentless demand for the grain in growing countries like China and India have made rice more scarce.[26]

Shortages of basic food commodities have prompted riots from Haiti to Pakistan, brought on by increasing food demands from developing countries, poor crop yields and rising fuel prices.[35] Costco Chief Executive James Sinegal said this week that he believed the recent surge in demand was being driven by media reports about rising global demand and shortages of basic food items in some countries.[25]

Poor rice harvests in Vietnam and other rice- producing countries combined with little advancement on acreage has limited global production.[22]

Lucky says the heart of the shortage comes from harvesters in Thailand and other Asian countries. "There was a big drought and the rice they produced last year wasn't enough to cover what they need in their own countries so everything that was sent over here they are buying back, so that's why we're feeling such a hurt here," says Lucky.[38] Rice shortages have sparked protests in several countries including the Philippines, Haiti and Egypt.[53]

Mark Welch, the grain marketing economist for Texas AgriLife Extension Service at Texas A&M; University, said rice shortages in the U.S. probably apply only to several imported varieties, not the domestic supply.[47] The U.S. shortage is limited to "Jasmin" and "Basmati" types of imported rice.[9]

According to the U.S. Rice Federation, the rising cost of rice is making some people stockpile it.[32] With people rioting in the streets of Haiti because they cannot afford to buy rice, Democracy Now speaks with human rights lawyer Bill Quigley about the U.S. policy decisions that may be to blame.[6]

"Food supplies have been pretty stable in the U.S. over the last 20 to 30 years.'' When prices rise rapidly, consumers buy larger quantities to lock in the lower prices, and that effect is exacerbated when a product is storable, he said.[21] Consumers, hoping to save money as food prices soar, tend to buy in bulk at food warehouses.[39] The World Bank warned this month that the higher food prices could push 100 million people in poorer developing countries further into poverty.[50] Food prices are igniting riots in developing countries -- and quietly claiming a chunk of my family's bottom line.[2]

Some customers said they simply can't believe increasing food prices overall. This has forced local retailers to get the best deal for their customers.[26] The higher commodities prices are also pushing up U.S. food prices and spurring inflation.[21] Rising food prices have been blamed on increasing demand, droughts, and the diversion of food crops to biofuel production.[29] Food price increases will be on the agenda in July, when the Group of Eight industrialized nations summit is held in Japan.[25] Canada hasn't seen as large an increase in food prices as other areas in the world but changing patterns in food use are having an impact on prices.[40]

Can bread lines -- or an equivalent crisis -- be looming in our nation's future? Food prices are rising due to a confluence of world events.[2] Civil unrest, poverty and weather conditions also play significant roles in food prices.[2] As I have always said though, I think ethanol is over-rated as a fuel source, and in fact it has been one of the reasons for the higher food prices.[30]

Crude oil prices are hovering just under $120 a barrel and the high energy costs reflected in manufacturing and transportation of packaged food items -- will sustain some level of inflation.[22] The economy seems to be taking a toll on all of us. It is not just the high prices at the pump putting a dent in our wallets, it is also the high cost of food.[54]

Today it is more important to deal with the threat of food inflation than the price of oil, whereas last year oil prices were more of a threat to the economy. This is the dynamic nature of the markets, and even more so in this electronic age, where policies must be nimble enough to deal with the crisis of the day as they will continue to keep changing, especially in times of great uncertainty and market instability. Both food and oil will on average be higher than last year, but the fact is that the rate of inflation will slow down.[30] When the critics say that inflation will continue to be high, at around the same rates as last fiscal year (20%) then it really speaks to a lack of understanding of the concept of inflation. Let us take an example; oil rose from US$70 per barrel last year to US$120 per barrel this week, which is a US$50 absolute increase or 71.4% over last year. The same US$50 increase over US$120, however, is only a 41.7% increase, which is 30% less than the prior percentage. This is the concept of inflation. It is not that prices may not increase but that the rate (% change) of increase is going to slow down.[30]

The federation also said world rice consumption has increased 40 percent in the past 30 years from about 134 pounds per person to 189 pounds per person.[19] By comparison, there is an abundance of medium- and short-grain rice planted in California, the nation's second-largest rice-producing state after Arkansas. California growers will harvest approximately 4 billion pounds this year, with 40 percent of the crop to be exported, the majority to Japan.[12]

According to a report in Monrovia, Liberia's The News, the chief executive officer of China's China-Africa Development Fund pledged 5 billion dollars of investment in African agriculture over the next 50 years -- including, specifically, rice production. (Thanks to China Digital Times for the link.)[37] Sales of rice and flour have increased at the Wal-Mart Supercenter on Mullan Road. "It hasnt been really huge, but we have noticed a spike in sales in rice and flour," said Becky Mounts, general manager.[39]

Wal-Mart in the U.S. has imposed rationing of rice, and Costco Wholesale's Canadian spokes-man is fielding a constant stream of calls from the media asking about what, if anything, is happening here.[49] The U.S. produces six million tonnes and owns 70 per cent of the Canadian rice market, which has so far insulated consumers from volatile Asian rice markets.[40] "In the U.S., there is enough rice for American consumers and our traditional export markets," said Fitzgerald-Redd.[35]

U.S. rice futures soared to an all-time high as investors bet that world demand will continue to pressure already dwindling stocks, according to The Associated Press.[35] The Associated Press reported Thursday that rice futures in the United States reached a record high during worldwide food inflation.[19] "We've sold half a pallet of basmati rice in the past couple of days alone," said John Attar, owner of Barbur World Foods. "That is far more than normal."[43] The curb affects "specialty rice" including jasmine, basmati and long-grain rice.[40] Traditionally very little of it was traded in the world market. As populations crossed borders, the taste for specialty rices such as the Indian basmati, or Thai jasmine rice, which grow only in their areas of origin, spread.[27]

Rice may be in short supply at grocery stores, but there's plenty of it in the small Crossroads Urban Center warehouse near downtown Salt Lake City. [33] Tran helps operate the family-owned store which serves people from Windsor's Filipino and Asian communities, including Vietnam and Cambodia. "We want to get more rice," Tran said, but suppliers have begun cautioning they don't have much and want to spread around what they can to stores.[49] "What you're seeing is people who buy in larger quantities, who have a restaurant or a corner store, stocking up because of media reports that prices could go higher," said Dave Heylen, a spokesman for the Californian Grocers' Association.[41] Some local grocery store owners believe some people are stockpiling now before the prices rise even higher. Joe Fasula, co-owner of Gerrity's Supermarket, said he buys some products in bulk in anticipation of more prices going up.[36]

VOICEOVER: At a food bank in New York City, rising prices are contributing to empty shelves and people being turned away. TYRONE HARRYSINGH, C.O.O., FOOD BANK FOR NEW YORK CITY: They're facing angry people on the line.[29] Soaring prices may put basic foods beyond the reach of the poorest people, raising the risk of a "silent famine'' in Asia, a World Food Program official said April 21.[21]

As corn prices have risen, for example, partly because of the demand for ethanol, farmers have shifted to that crop and out of specialty products like rye, food industry officials said.[13] Thailand also may restrict shipments, a World Bank official said today. "The warehouse clubs are doing it to protect their business customers, like smaller restaurants, caterers, nursing homes, day-care centers,'' said food consultant Jim Degen. "The business members are the most important members in warehouse clubs because they generate so much more revenue per member.''[21] "I try to always be prepared and have a stock of food on hand," explained one customer. Sounds like a good idea, but that may be a think of the past if wholesale grocers continue to ration its food supply.[54] The response is "an absolutely rational economic reason," as food is almost certain to get more expensive, said Patel. Because of restrictions on exports, drought and uncertainty about supply, "all of a sudden you are seeing the kinds of economic behavior that are normal in a market like this," said Patel. "When people get jumpy, they start hoarding."[12]

Ken Jarosch, president of the Chicago Area Retail Bakers Association and owner of a bakery in Elk Grove Village, said white rye flour, used to make rye, pumpernickel and marble bread, is in short supply, as is gluten flour, a binding ingredient. "I bought all the rye flour I will need for this year," Jarosch said. He said bakers have been hit hard in the last few years by escalating prices for eggs, milk, butter, shortening, sugar and flour.[13] The price of the 20-kilogram bag of flour he sells has doubled in recent weeks to $30 from $15, he said.[48] Soybeans prices dipped 2 percent for the week, settling at $13.325 a bushel Friday on the Chicago Board of Trade.[15]

Rice at the Chicago Board of Trade rose to an all-time high of above $25 per 100 pounds during Asian trading hours Thursday.[20]

H-E-B is not limiting the rice customers can buy, said Cyndy Garza, the grocer's local public affairs director. [47] One executive compared the run on rice to a run on the bank. Customers are loading up on rice because they see other people doing it.[4] "I think the crisis is in people's heads, maybe because Asian people eat rice two or three times a day," Eun said.[40] "We do not know when (the increases) will end, and we won't know until it is harvest time in October," said Johnson. He added, "At the end of the day, the average person in California is going to buy rice for only 10 cents a serving.[12]

There is no shortage of rice for consumers, said David Coia, a spokesman for the USA Rice Federation.[47] Coia guessed the fear of shortages may have led some warehouse members to hoard rice.[47] Sunderfoot, in answer to your question: if I remember correctly from the news, the nations that are growing and providing us with rice have now become hoarders. They are not releasing the tons of rice to be exported as in the past, in order to alleviate the shortage of rice in their own country.[28]

Worldwide, demand for rice has outstripped demand for several years, said Bob Cummings, senior vice president of the USA Rice Federation, an industry group.[22] Thailand and Vietnam are the world's largest rice-exporting countries, while India is projected to surpass the United States as the third largest rice exporter, according to the U.S. Department of Agriculture.[35] "Lot of people don't realize it, but United States is one of the major rice growers in the world.[55]

The recent decision by some major retailers to limit rice purchases is a smart economic move. [46] Limits on rice purchases are expected to be felt most in California and Texas, which have large Asian and Mexican populations.[23] Limits on rice purchases will be felt the most in California and Texas, which have large Asian and Mexican populations, whose diets include rice, Degen said.[21]

Long-grain rice is imported by a broad spectrum of countries in South and Southeast Asia, much of the Middle East, nearly all of Sub-Saharan Africa, and most of Latin America. [35] The AP reported the steep price increases have led to violent food riots in poor countries, including Haiti, Pakistan and Senegal in western Africa.[14] The steep increases have followed similar jumps in the price of wheat, corn and soybeans that have added to Americans' growing grocery bill and led to violent food riots in poor countries including Haiti, Senegal and Pakistan.[27]

The dynamics of the world food economy are playing out in full force in Oregon as real and perceived shortages are driving prices to record highs. [43] Food rationing is just the latest way the food industry is trying to remedy diminishing food supply due to soaring prices.[54] Cold and wet weather in corn-growing areas has slowed spring planting and led some farmers to consider planting soybeans instead. A number of food companies use soybeans to make their goods. Meat producers may benefit the most from a bigger soybean supply - and the falling prices that go along with it - since they use the grain to make animal feed.[15]

Eventually that trickles down and signals the marketplace to plant more, Ellram said, leading to a surplus once consumer panic subsides. "The stores are doing what they can to prevent the hysteria. There's not an underlying imbalance between supply and demand; it will work its way through the system," she said. "In this country, we do have enough food."[46] Poon said what's going on in the bigger picture is a combination of supply and demand and consumer reaction. "We believe all this is happening because people are adding fuel to the fire," he said.[20]

The picture is in fact mixed. The fact though is that markets always behave in this manner when trying to find equilibrium. It will spike up and go down until it finds the equilibrium price, and this is influenced by market forces such as changes in supply and demand.[30] U.S. futures prices reportedly hit record highs on worries of supply shortages.[39] With a shortage of ingredients and higher fuel costs, the price of beer is quickly getting harder to swallow. The coffee chain lowered its second-quarter and full-year results below analysts' expectations.[2] The farm-gate wheat cost reflected in that loaf's price increased to 7%, or 14 cents, from 4%, or 6 cents, a year earlier.[22] Flour prices are up significantly because the cost of wheat has increased, and the association said it has received reports that supplies of certain rye flour will be exhausted by July. "It will most likely be a problem if haven't purchased rye at this point," said Lee Sanders, a spokeswoman for the association.[13]

If we weren't able to get any more rice or any more flour, that would be a different story; but we're able to continue to replenish our supplies.[29]

We don't think there is a shortage, it is just increased shopping by customers who think there is," said Richard Galanti, Costco's chief financial officer. For now, the retailer is allowing managers of stores with short supplies to set their own rules. Other retailers report adequate supplies.[10] Pam Clevenger, grocery manager at the Good Food Store in Missoula, said about five customers have inquired about possible shortages since Monday.[39]

Food Lion LLC stores are "not limiting sales whatsoever," said spokeswoman Karen Peterson.[22] "The problem right now, the supplier is only limiting you to so many sacks per shipment," said Richard Jue, co-owner of China Garden Restaurant. "They won't let you buy up to 30 sacks or 40 sacks and let you store it."[47] Here in North America retail prices have only eased up between five and 20 per cent on store shelves.[40] I rarely break $300 at the grocery store -- even for a large order. This outrageous tab -- to ensure proper nutrition for my five-person family -- is an alarming indicator that the price of yet another significant nondiscretionary expense (in addition to fuel) is going haywire.[2]

Costco, the largest U.S. warehouse club, climbed $1.52, or 2.2 percent, to $69.60.[21] The Sam's Club restriction is effective immediately at all locations where quantity restrictions are allowed by law. It does not apply to other staples such as flour or oil. "We are working with our suppliers to address this matter to ensure we are in stock, and we are asking for our Members' cooperation and patience," Reed said in a statement.[27] Wal-Mart spokeswoman Kristy Reed declined to comment on whether the problem was caused by short supplies or by customers stocking up in anticipation of higher prices. "We are working with our suppliers to address this matter to ensure we are in stock, and we are asking for our members' cooperation and patience," Reed said in a prepared statement.[23] T&T;'s Metrotown grocery manager Danny To confirmed that prices have edged up for customers by about 20 per cent. "People are buying a little more because they are afraid the price will go up," To said.[40] Sasha Yu, an employee at Dragon River Restaurant in San Francisco, said a price increase would chase away customers.[12] Retailers and wholesalers who have been absorbing small price increases to keep prices stable for B.C. consumers have run out of wriggle room, Hornell said.[40] The Consumer Price Index (CPI) is a measure of the general level of prices in the U.S. economy.[35] The consumer price index climbed 0.3 percent in March, after no change in the prior month, the Labor Department said April 16.[21]

Hoarding can be an early indication that inflation expectations are taking root in the broader economy, as consumers buy ahead in anticipation of higher prices in the future. [23]

Looking for a new home? Curious about prices in other cities? You can search listings of newly built homes, by price range or by U.S. city, online right now.[31] Food companies did get some positive news Friday, as forecasts of more wet weather in the U.S. corn belt raised expectations that farmers may switch from corn to soybeans and boost supplies.[15] The growing economies in India and China mean that more residents can now afford better-quality food, so global demand for meats and grains is rising. A greater share of the U.S. corn crop is being diverted to producing biofuels, such as ethanol.[2] Growing awareness of global food shortages have exposed a deep divide in Europe over how best to guarantee supplies.[9]

I disagree with this article. We may not have a shortage in the U.S. at this time, but worldwide food shortages are real.[46] I heard one field reporter on FOX say, "The food shortage will be good for the U.S. because the U.S. has free trade."[1]

I expect it will impact us in the near future." According to Robin Sills, executive director of Healing Hunger at Naves Crossroad, their service in helping low- to moderate-income families with food has not seen a change yet either. The U.S. Department of Agriculture commodity surplus food that is distributed to 11 emergency food pantries and to eligible families has not been decreased at this time.[7]

Action News reporter Jessica Lovell explains the reasoning behind the food rationing trend. It was just a matter of time before direct food market customers would feel the effects of the slowing economy and it has some local shoppers taking notice and planning ahead.[54]

I feel bad." Ethnic food stores are hit harder because they buy from different suppliers, said John Scott, president and CEO of the Canadian Federation of Independent Grocers.[48] Some small businesses and restaurant owners buy pallet loads of basic commodities at food warehouses.[39] PORTLAND, Maine -- While Mainers are feeling the pinch of rising food costs as they stroll the aisles of their local supermarkets, restaurant owners also are finding themselves being hit hard.[31] Like hundreds of shoppers who crowd into Guara market on the outskirts of Brazil's capital, Brasilia, Antonia da Souza complained about the startling increases in the cost of food (Gabriella Gamini writes).[9] The problem is people have become used to buying cheap food which is, more often than not, sold below the cost of production.[9]

The shortage could get worse if people panic and stockpile food, Mr. Kwan said: "If the hysteria gets to a place where everybody hordes, we could be in trouble."[48] Although the United States has escaped shortages seen in poor countries, the nation is contending with the worst bout of food inflation since 1990.[35]

Wal-Mart spokesman Phillip Keene declined to comment further on the corporation's decision and said local store managers are not allowed to talk to the media. The move comes on the heels of Costco Wholesale Corp. limiting bulk-rice purchases at its stores. [19] James Sinegal, the chief executive of Costco, said the firm would limit only very big purchases. Any customer wanting 10 pallets of flour probably would be told they could have only one pallet, he said.[41] Bags of flour are displayed at a Costco store in San Francisco on Wednesday.[13] Customers interviewed outside the store were unfazed. Patrick Duffy, who was loading groceries into his car, bought his usual one 20-pound bag of basmati to be used at Jammin' Bread, the restaurant-cafe in Riverside operated by his wife, Cheryl.[25] A 36-pound bag can last about two weeks for a family of four, store staff say.[49]

"But no one's saying we're going to run out of wheat. It's just tight." Bakers can also find the flour they need, "they just don't like paying what the price has shot up to," he said. [22] From milk, eggs and flour to meat and poultry, price increases are squeezing many eateries' bottom lines.[31]

Mark Loring of Saltwater Grille added, "We wrestle with it all the time, as far as prices go.[31]

SOURCES

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2. Rice and Wrong: Food Costs Flummox | Saving | COST WMT - TheStreet.com
3. Behind the Run on Rice
4. A run on rice | ScrippsNews
5. The Columbus Dispatch : Stores limit purchases of big bags of rice
6. High Rice Prices Hit the U.S. / findingDulcinea
7. Cumberland Times-News - Not-so-nice rice price hike yet to take toll locally
8. Chatham Daily News - Ontario, CA
9. Food crisis: rationing introduced in bid to protect rice supplies - Times Online
10. Run on rice makes its way to U.S. - Los Angeles Times
11. Sam's Club says rice limits meant to protect stock | Industries | Consumer Goods & Retail | Reuters
12. Global rice squeeze hitting U.S. consumers
13. What's going on with rice and flour? -- chicagotribune.com
14. Rice now a luxury? : Local : Abilene Reporter-News
15. Commodities Wrap: Rice rises, soybeans fall - Forbes.com
16. Rice Price Crisis Causes Some Stores To Ration
17. Stores limiting sales of imported rice
18. AFP: Two major US retailers ration rice amid global food crisis
19. Sam's Club limits bulk rice sales | GoDanRiver
20. Calgarians feel pinch as world rice prices soar
21. Bloomberg.com: Worldwide
22. Most Grocery Chains Not Jumping On Buying-Limit Bandwagon
23. www.kansascity.com | 04/23/2008 | Limits on sales of rice cause worries
24. Run on rice reaches United States - UPI.com
25. Limits placed on sales of specialty rice | Business | PE.com | Southern California News | News for Inland Southern California
26. Rice Shortages Lead To Rationing At Local Outlet - Bakersfield News Story - KERO Bakersfield
27. The Associated Press: Sam's Club, Costco limit rice purchases as prices rise
28. The Daily Journal - www.thedailyjournal.com - Vineland, N.J.
29. The Real News: Specter of food rationing hits US supermarkets
30. Understanding inflation concerns - JAMAICAOBSERVER.COM
31. Restaurants Squeezed By Rising Food Costs - Money News Story - WMTW Portland
32. 13WMAZ.com - Rice Prices Rising
33. Local Co-op offers members low-cost, quality food - ABC4.com
34. MyrtleBeachOnline.com | 04/25/2008 | Grand Strand stores limit rice purchases
35. Utahns stock up as food prices bite - Salt Lake Tribune
36. The Citizens Voice - Skyrocketing rice prices impact local businesses
37. Where has all the rice gone? - How the World Works - Salon.com
38. News::Rice Shortage Affects Hmong Community
39. Missoulian: Local grocers rationing rice sales
40. Price of rice fluctuating day by day
41. Wal-Mart bans bulk sales of rice - Telegraph
42. The Associated Press: Wal-Mart-owned Sam's Club limits rice purchases
43. A world of factors sends local rice prices soaring - OregonLive.com
44. AFP: Wal-Mart unit limits rice purchases
45. Rising Food Prices | Commodity Costs
46. The Coloradoan - www.coloradoan.com - Ft. Collins, CO.
47. As rice prices rise, some retailers restrict sales | Chron.com - Houston Chronicle
48. Rising food prices hit Ottawa stores hardest
49. Stores see run on rice
50. Daily Dispatch Online
51. US: Costco, Sam's Club ration rice sales : Food News & Comment
52. LocalNews8.com Idaho Falls, Pocatello - Weather, News, Sports - Local Family Avoids High Food Prices by Stockpiling
53. BBC NEWS | Business | Wal-Mart restricts rice purchases
54. KTNV ABC,Channel 13,Las Vegas,Nevada,News,Weather,Sports,Entertainment,KTNV.com,Action News .:. Stores Putting Limits On How Much Groceries Customers Can Buy
55. Shoppers, Businesses Wary Of Mainland Rice Limits - Money News Story - KITV Honolulu

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