Spring Break
Rationing rice
U.S. trying to avoid a shortage
Issue date: 4/24/08
Wednesday's big business news buzz: wholesale stores rationing the amount of rice they sell to customers, effective immediately. Yes, you read that right. The U.S. is rationing rice.
According to an article on FoxBusiness.com, Wal-Mart, the world's largest retailer, said that it would ration the amount of rice each customer can buy at its Sam's Club warehouse stores. The reason they say is recent "supply and demand trends."
Costco, the nation's largest warehouse retailer, is also putting a limit on rice purchases. According to the FoxBusiness.com article, the company has a two 50-lb limit on rice purchases to keep people from hoarding and reselling the rice. For some people, isn't the point of shopping at Costco to buy items in bulk and re-sell them?
The price of rice rose to $894 a metric ton on Wednesday, according to the Thai Rice Exporters Association Web site. On March 19, the price of rice was at $548 a metric ton. In about a month, this will be a $346 increase. Although prices are going up, people aren't necessarily going to buy all the rice they can right now so that later when it is even more expensive, they don't have to worry about it?
What is probably going to make people run to the store and buy as much rice as they can is the media hype. It's like when meteorologists forecast a big storm and everyone runs to the grocery store to stock up on bottled water and canned food. Well, if no one knew about the storm, who would actually stock up? Similarly, when a company says they are afraid of people hoarding rice, giving people the idea to go do it.
Nathan Childs, an economist and rice expert with the U.S. Department of Agriculture, says in a Boston Globe article that U.S. production of long grain and medium grain rice is strong, and the global crop is larger than ever. Okay, so then why are Sam's Club and Costco rationing rice? Is this a really early start, just in case we run out? What about third world countries that probably seriously ration rice because they don't have enough and not because they are worried they might run out?
According to the article from FoxBusiness.com, Wal-Mart did not say when the rationing will stop. Great, so the U.S. is coming to the point of possibly infinitely rationing rice to its citizens.
According to an article on FoxBusiness.com, Wal-Mart, the world's largest retailer, said that it would ration the amount of rice each customer can buy at its Sam's Club warehouse stores. The reason they say is recent "supply and demand trends."
Costco, the nation's largest warehouse retailer, is also putting a limit on rice purchases. According to the FoxBusiness.com article, the company has a two 50-lb limit on rice purchases to keep people from hoarding and reselling the rice. For some people, isn't the point of shopping at Costco to buy items in bulk and re-sell them?
The price of rice rose to $894 a metric ton on Wednesday, according to the Thai Rice Exporters Association Web site. On March 19, the price of rice was at $548 a metric ton. In about a month, this will be a $346 increase. Although prices are going up, people aren't necessarily going to buy all the rice they can right now so that later when it is even more expensive, they don't have to worry about it?
What is probably going to make people run to the store and buy as much rice as they can is the media hype. It's like when meteorologists forecast a big storm and everyone runs to the grocery store to stock up on bottled water and canned food. Well, if no one knew about the storm, who would actually stock up? Similarly, when a company says they are afraid of people hoarding rice, giving people the idea to go do it.
Nathan Childs, an economist and rice expert with the U.S. Department of Agriculture, says in a Boston Globe article that U.S. production of long grain and medium grain rice is strong, and the global crop is larger than ever. Okay, so then why are Sam's Club and Costco rationing rice? Is this a really early start, just in case we run out? What about third world countries that probably seriously ration rice because they don't have enough and not because they are worried they might run out?
According to the article from FoxBusiness.com, Wal-Mart did not say when the rationing will stop. Great, so the U.S. is coming to the point of possibly infinitely rationing rice to its citizens.
Viewing Comments 1 - 2 of 2
Anonymous
posted 5/06/08 @ 10:10 PM EST
THIS ARTICLE IS SERIOUSLY STUPIDDD I ASKED FOR THE REASON OF RICE RATIONING NOT THE EFFIN STORY D-U-H
M
posted 5/12/08 @ 11:31 PM EST
I'm sorry to say that this article has terrible grammar...what's up with the poorly written chronicle articles lately?
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