As we reported a few days ago, India has banned exports of rice. In an example of cause and effect, we are now seeing what this article calls a “buying frenzy” as consumers and the restaurant industry rush to stock up on rice from India. As a result, some stores have implemented restrictions on how much rice they will sell at a time.
This is an example of why you should stock up on important food staples and other items before a crisis hits. The distribution pipeline is finely tuned for a specific set of circumstances. If those circumstances change, the pipeline cannot adapt quick enough, leading to shortages and higher prices. This in turn can lead to limits on how much can be purchased or government-imposed price fixing. We’re seeing this in rice today. Last year it was eggs. Who knows what it will be tomorrow.
Published 7/36/2023. View full article.