23 April 2008

The Great Famine '08

Driven by media reports about rising global demand and shortages of basic food items in some countries, warehouse clubs that cater to individual shoppers as well as small businesses and restaurant owners looking to buy cheaper bulk-sized goods are feeling the pinch of supply and demand.

Wal-Mart's "Sam's Club" warehouse division says they're limiting sales of Jasmine, Basmati and long grain white rice "due to recent supply and demand trends." Sam's Club is limiting sales of rice to 4 bags per customer per visit, and is working with suppliers to ensure the products remain in stock. Sam's Club said is not limiting sales of flour or cooking oil at this time.

Yesterday, Costco said it has seen increased demand for items like rice and flour as customers, worried about global food shortages and rising prices, stock up. Costco said some of its stores have put limits on sales of items such as rice and flour, but it was trying to modify those restrictions to meet customer demand.

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