AMERICAS 
Global rice shortage sparks panic
Thursday, 24 April, 2008
A pair of Costco customers buy their allotment of one bag of rice each at a Costco store in Mountain View, California. (AAP)
Some supermarket shoppers in America are facing rice rations - as a global shortage of the grain prompts retailers to restrict supplies.
In Australia, successive years of drought have dwindled local harvests - but retailers are confident they'll have enough to keep the shelves stocked.
The global shortage of rice has sparked panic buying in some United States supermarkets.
Two retailers - Sam's Club - a division of Wal-Mart - and Costco - are limiting the number of bags shoppers can buy.
A spokesman from Costco Companies Inc. says Costco has noticed consumers hoarding - but says it's not about to run out.
“We don't want to create a panic where we don't think there is a panic, 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,” Jim Sinegal said.
In Australia, years of drought have seen rice growers' water allocations slashed, and only a handful of producers have been able to harvest crops.
That means much of the rice on supermarket shelves is being shipped in from overseas.
The rice marketing body, Sunrice, and the major retailers say they have secure supply chains.
“I mean I suppose demand and supply mean that we're in a slightly better situation and indications from the large supermarket chains at this point is that we're not going to see any change to what's available,” Margy Osmond from ANRA said.
The global shortage has led to outbreaks of violence and looting in some nations, as residents fight to get a share of the staple.
And a number of rice producing nations - including India, Vietnam and Brazil - have imposed export curbs - to make sure they have enough to feed their own people.
Their actions have driven the global price even higher - up 70 percent this year alone.
US Rice futures have hit a record high - almost 25 US dollars per 45 kilo bag on the Chicago Board of Trade, for July contracts.
But Australian retailers are not expecting any sudden jumps in their prices.
Source: SBS
In Australia, successive years of drought have dwindled local harvests - but retailers are confident they'll have enough to keep the shelves stocked.
The global shortage of rice has sparked panic buying in some United States supermarkets.
Two retailers - Sam's Club - a division of Wal-Mart - and Costco - are limiting the number of bags shoppers can buy.
A spokesman from Costco Companies Inc. says Costco has noticed consumers hoarding - but says it's not about to run out.
“We don't want to create a panic where we don't think there is a panic, 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,” Jim Sinegal said.
In Australia, years of drought have seen rice growers' water allocations slashed, and only a handful of producers have been able to harvest crops.
That means much of the rice on supermarket shelves is being shipped in from overseas.
The rice marketing body, Sunrice, and the major retailers say they have secure supply chains.
“I mean I suppose demand and supply mean that we're in a slightly better situation and indications from the large supermarket chains at this point is that we're not going to see any change to what's available,” Margy Osmond from ANRA said.
The global shortage has led to outbreaks of violence and looting in some nations, as residents fight to get a share of the staple.
And a number of rice producing nations - including India, Vietnam and Brazil - have imposed export curbs - to make sure they have enough to feed their own people.
Their actions have driven the global price even higher - up 70 percent this year alone.
US Rice futures have hit a record high - almost 25 US dollars per 45 kilo bag on the Chicago Board of Trade, for July contracts.
But Australian retailers are not expecting any sudden jumps in their prices.
Source: SBS
