New York, April 25 (IANS) After big retail chains like WalMart, some Indian grocery stores too have begun rationing the sale of rice following shortages caused by export bars by countries including India.

A spokesperson for Patel Brothers in Jackson Heights, New York, confirmed that customers now cannot buy more than two bags of rice.

"All the rice we stock comes from India," the spokesperson told IANS. "But with India banning export, we will have problem replenishing our stock."

In the process, prices have doubled over the past few months, he added.

Narinder Singh, who owns Hicksville Subzi Mandi, said there were queues of people at his grocery store in Long Island, New York, buying 3-4 bags of rice and wheat each.

"We have not yet put a limit on how much each one can buy, but you never know what will happen tomorrow," Singh said.

On Wednesday, two of America's largest warehouse chains imposed limits on purchase of rice because of panic buying triggered by tightening supplies and rising prices.

Wal-Mart's cash and carry division, Sam's Club, announced a cap of four bags of rice per person to prevent supplies from running short. Rival Costco did the same in parts of California.

India's restriction on export of all rice, except basmati, is being blamed in part for the rice stampede. India is the second largest producer of rice and wheat in the world.

Other major rice producing countries including China, Vietnam and Egypt have also imposed limits on exports to keep domestic prices down.

Agriculture Secretary Ed Schafer Thursday sought to calm the frayed nerves of consumers, saying there was no shortage of rice in the US.

He also said the surge in rice prices to record heights at the Chicago Board of Trade, the world's largest grain exchange, could be attributed in part to speculation about future rice shortages.



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If small acreage Indian farmers collaborate and make large acreage cooperative farms using mechanized high yield, hybrid seeding, fertilizing, harvesting, efficient storage, transportation, and distribution India should aim to double its rice and wheat production in less than five years lifting the present curb on exports. (Rice shortage hits Indian stores in US too - April 25) What happened to green revolution?

Rice and wheat price increase is real as Dollar has devalued compared to Rupee and almost doubling the diesel and crude oil price in last couple of years is responsible for the increase in transportation costs creating the hoarding by greedy customers and Asian restaurant owners which consume high amount of rice on daily basis. Even saffron, nick named as red gold, has quadrupled its price in one year to $72 per OZ for the highest grade 240 Coloring Power, within last one year due to the saffron crop failures.

US consumers should not panic since US is the fourth largest rice producing country in the world and only 10 percent rice is exported while 90 percent is used within 50 states. Importing rice to US does not make sense except the price advantage thus far from low-labor countries such as India which has virtually been eliminated now due to curb on wheat and rice exports from India, Pakistan, and Thailand.

Shantu Shah
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