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<p>Philip<br>
<br>
MOUNTAIN VIEW, Calif. — Many parts of America, long considered the <br>
breadbasket of the world, are now confronting a once unthinkable <br>
phenomenon: food rationing. Major retailers in New York, in areas of <br>
New England, and on the West Coast are limiting purchases of flour, <br>
rice, and cooking oil as demand outstrips supply. There are also <br>
anecdotal reports that some consumers are hoarding grain stocks. <br>
At a Costco Warehouse in Mountain View, Calif., yesterday, shoppers <br>
grew frustrated and occasionally uttered expletives as they searched <br>
in vain for the large sacks of rice they usually buy. <br>
"Where's the rice?" an engineer from Palo Alto, Calif., Yajun Liu, <br>
said. "You should be able to buy something like rice. This is <br>
ridiculous." <br>
The bustling store in the heart of Silicon Valley usually sells four <br>
or five varieties of rice to a clientele largely of Asian <br>
immigrants, but only about half a pallet of Indian-grown Basmati <br>
rice was left in stock. A 20-pound bag was selling for $15.99. <br>
"You can't eat this every day. It's too heavy," a health care <br>
executive from Palo Alto, Sharad Patel, grumbled as his son loaded <br>
two sacks of the Basmati into a shopping cart. "We only need one bag <br>
but I'm getting two in case a neighbor or a friend needs it," the <br>
elder man said. <br>
The Patels seemed headed for disappointment, as most Costco members <br>
were being allowed to buy only one bag. Moments earlier, a clerk <br>
dropped two sacks back on the stack after taking them from another <br>
customer who tried to exceed the one-bag cap. <br>
"Due to the limited availability of rice, we are limiting rice <br>
purchases based on your prior purchasing history," a sign above the <br>
dwindling supply said. <br>
Shoppers said the limits had been in place for a few days, and that <br>
rice supplies had been spotty for a few weeks. A store manager <br>
referred questions to officials at Costco headquarters near Seattle, <br>
who did not return calls or e-mail messages yesterday. <br>
An employee at the Costco store in Queens said there were no <br>
restrictions on rice buying, but limits were being imposed on <br>
purchases of oil and flour. Internet postings attributed some of the <br>
shortage at the retail level to bakery owners who flocked to <br>
warehouse stores when the price of flour from commercial suppliers <br>
doubled. <br>
The curbs and shortages are being tracked with concern by <br>
survivalists who view the phenomenon as a harbinger of more serious <br>
trouble to come. <br>
"It's sporadic. It's not every store, but it's becoming more <br>
commonplace,<wbr>" the editor of SurvivalBlog.<wbr>com, James Rawles, <br>
said. "The number of reports I've been getting from readers who have <br>
seen signs posted with limits has increased almost exponentially, <br>
I'd say in the last three to five weeks." <br>
Spiking food prices have led to riots in recent weeks in Haiti, <br>
Indonesia, and several African nations. India recently banned export <br>
of all but the highest quality rice, and Vietnam blocked the signing <br>
of a new contract for foreign rice sales. <br>
"I'm surprised the Bush administration hasn't slapped export <br>
controls on wheat," Mr. Rawles said. "The Asian countries are here <br>
buying every kind of wheat." Mr. Rawles said it is hard to know how <br>
much of the shortages are due to lagging supply and how much is <br>
caused by consumers hedging against future price hikes or a total <br>
lack of product. <br>
"There have been so many stories about worldwide shortages that it <br>
encourages people to stock up. What most people don't realize is <br>
that supply chains have changed, so inventories are very short," Mr. <br>
Rawles, a former Army intelligence officer, said. "Even if people <br>
increased their purchasing by 20%, all the store shelves would be <br>
wiped out." <br>
At the moment, large chain retailers seem more prone to shortages <br>
and limits than do smaller chains and mom-and-pop stores, perhaps <br>
because store managers at the larger companies have less discretion <br>
to increase prices locally. Mr. Rawles said the spot shortages <br>
seemed to be most frequent in the Northeast and all the way along <br>
the West Coast. He said he had heard reports of buying limits at <br>
Sam's Club warehouses, which are owned by Wal-Mart Stores, but a <br>
spokesman for the company, Kory Lundberg, said he was not aware of <br>
any shortages or limits. <br>
An anonymous high-tech professional writing on an investment Web <br>
site, Seeking Alpha, said he recently bought 10 50-pound bags of <br>
rice at Costco. "I am concerned that when the news of rice shortage <br>
spreads, there will be panic buying and the shelves will be empty in <br>
no time. I do not intend to cause a panic, and I am not speculating <br>
on rice to make profit. I am just hoarding some for my own <br>
consumption,<wbr>" he wrote. <br>
For now, rice is available at Asian markets in California, though <br>
consumers have fewer choices when buying the largest bags. "At our <br>
neighborhood store, it's very expensive, more than $30" for a 25-<br>
pound bag, a housewife from Mountain View, Theresa Esquerra, <br>
said. "I'm not going to pay $30. Maybe we'll just eat bread." <br>
<br>
<a href="http://carolynbaker.net/site/index2.php?">http://carolynbaker<wbr>.net/site/<wbr>index2.php?</a><br>
option=com_content&<wbr>task=view&<wbr>id=456&pop=<wbr>1&page=0#<br>
<br>
<a href="http://www2.nysun.com/article/74994">http://www2.<wbr>nysun.com/<wbr>article/74994</a><br>
<br>
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