There apparently isn't any shortage of rice in the U.S. but concern over how quickly current world supplies are being drawn down has given commodity speculators all the ammunition they need to drive the price of rice through the roof.
The price of rice from Thailand has nearly tripled since the beginning of the year and stands at record highs. Rice prices on the Chicago Board of Trade are up about 80 percent this year.
While U.S. government and trade group officials have maintained that there is no shortage on the horizon, buyers have been streaming into warehouse clubs to buy rice in bulk.
USA Rice Federation spokesperson David Coia offered an explanation to The Associated Press. "It's possible that small restaurants and bodega-type neighborhood stores may be purchasing rice in larger quantities than they do typically to avoid higher prices," he said.
Having seen this bulk rice buying activity take place, both Sam's Club and Costco have stepped in to put a limit on bulk rice purchases.
Sam's, which is limiting the sale of 20-pound bags of jasmine, basmati and long grain white rice to four per shopping trip, said it took the action to prevent large distributors from depleting its stock.
"We believe limiting rice purchases to four bags per visit is consistent with the needs of the majority of our members, including many restaurants," Sam's Club spokesperson Susan Koehler told Reuters in an email.
Discussion Questions: What do you make of the current run-up in rice prices? Will we be seeing this type of activity taking place in other food commodities? What are your thoughts on the steps taken by Sam's Club and Costco to deal with concerns of apparent hoarding activity?