Wheat, Rice, And Cooking Oil Shortage Leads To Rationing In Some US Stores
April 21, 2008
It is being reported that the recent steep rise in commodity prices around the world are beginning to impact American’s dinner plans. Costco stores in California are rationing rice in some of their stores. In other locations, warehouse stores are restricting the amounts of cooking oil and flour are being controlled.
Wheat, rice, and cooking oil prices have doubled since Februrary and worldwide shortages of these products have led to huge price increases at retailers and restaurants. Many US suppliers and grocery stores have not yet passed the new higher prices on to customers, but things are about to change.
National grocery store chains have announced that steep price increases will occour around the 1st of May to account for their higher raw food costs.
A major cause of this shortage and price increases stems from the ever increasing cost of fuel and the fact that many farmers have switched to growing corn for the booming ethanol craze. With crude oil at $118 per barrel, many farmers are feeling the pinch of higher production costs.
Developing countries like China and India are also adding to record high prices. There are now major shortages of staple food crops in these nations and governments around the world are now panic buying of rice and wheat to feed their hungry masses.
2 months ago, the US Dept Of Agriculture reported that the USA would import wheat for the first time in the nations history. With jittery world markets, and decreasing supplies of basic food crops happening around the world, tough times could be ahead for us all.
Go out and buy some rice and flour if you use them regularly, before prices spike, and all of you farmers out there, please plant more wheat and rice.
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