Sunday, April 27, 2008

Costco/Wal-Mart Limiting Rice Consumption

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. As a result, 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. Sam's Club said the restriction is due to "recent supply and demand trends."

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. Drought has contributed to the shortage, as has hoarding, experts say. - San Francisco Chronicle

The easiest way around this is to simply not go to Costco or Wal-mart. Yeah really.

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