With costs of rice and other product on the rise, some restaurants forced to raise their own prices
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By EVAN WHITE
Story Created:
Apr 24, 2008 at 12:03 PM EDT
Story Updated:
Apr 24, 2008 at 1:11 PM EDT
With commodities prices skyrocketing, the cost of rice, corn, and wheat has more than doubled in the past year, creating what may be the worst food shortage since World War II.
National warehouse chains are limiting how much rice customers can buy. Customers can only buy four 20 pound bags of rice at a time. The move comes as U.S. rice prices hit a record high -- by as much as 70%.
Despite the price spike, the California Rice Commission says there is no shortage in the U.S. and that consumers should not be alarmed. Local restaurants are feeling the pinch of high rice costs as well.
With a high number of multicultural restaurants in the Greater Utica area, paying for the rice shortage has been tough on many.
Most of the local restaurants we spoke with are raising their prices, or will do so in the near future to offset the exorbitant amount of money they are paying for rice.
At the Phoenician in New Hartford, rice goes into virtually every meal from parboiled long grain rice, to basmati and short-grain rice. Ownership says it's paying about $9 per pound more on average for rice, others are paying double.
Symeon's Greek restaurant in Yorkville is one of those paying twice as much. Some large restaurants are buying more in anticipation of higher costs, others don't have the option.
"It is going like a ladder...straight up," said George Karam, owner of the Phoenician. "And if you have room, it's better than putting money in the bank, you are getting 100%, you are not getting 100% if you put your money in the bank."
Aside from rice products like vegetable oil and chick peas are also said to be going up.
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