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Our current Rice Hysteria

By: Emil, Apr 25, 2008
Tags: general, politics |

Got rice?

Of course you do. Even if the price is up in Chinatown.

But why buy more  to hoard when the prices are artificially high? That only drives up the prices even higher and makes a temporary spike last longer.
I don’t know about Uncle Ben’s, but your fancy Cal-Rose long grain grown in America rice  shouldn’t be impacted by  any real shortages in Asia.

The only shortage here is in a little economic common sense, like supply and demand.

Supply isn’t an issue yet in the U.S.  And as a worldwide source U.S. exports are around 1-2 percent of the market.

But if everyone takes advantage of rice hysteria, then the farmers will respond to all the news and  hold out for higher prices. Then the rice brokers will sell more to Asia and other markets instead of to domestic outlets. And then all of that will be part of a self-fulfilling consumer prophecy.

If you believe we have a shortage, we will have one. And you are partly responsible for creating it.

So relax.

Don’t freak out when you can’t put three 50 pound sacks in your Costco basket. You can still walk out of there with three gigantic 10 pound jars of jalapenos.

If that’s not to your taste, then go to plan B.

Eat more noodles.

Comments

  1. My next column will be about rice. US stories don’t mention it, but world money that went into and out of oil and real estate is now buying massive amounts of grains. If rice prices are headed for the moon, and stocks/bonds/real estate are flat to dead, where do you park ten million dollars? Maybe we need a strategic rice stockpile instead of oil. Mr Obama, what is your position on this? A windfall rice profits tax?

    –awarthurhu on Apr 29, 2008

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