how do you report price gouging?

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tulip_IHB

tulip_IHB

New member
Where do I report price goungin in California? Went to the Asian grocery store and the price of a bag of rice double in 3 days. Extra $ 20 is not going to hurt us, but there are a lot of older folks that are on fixed income and $ 20 extra is a lot for them.



A bag of 50 lbs of rice usually cost $ 20, now it is $ 40....and continue to climb.
 
Surely, you've seen several news articles lately discussing this very topic: <a href="http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10396224">Price of Rice</a>



Not sure this is just a California thing but if it is, then nothing a little shopping around couldn't resolve.
 
tulip--the easy answer would be to not shop there anymore. There are plenty of Asian grocery stores around, just don't buy at the one that charges double the going rate. This is the beauty of a free market economy. :-)
 
It is not one grocery stores in the OC, it all all Asian stores including the one in San Jose, Arizona....
 
I realized the price of rice is increasing, but it can not increase within 3 days doubling it price.



Still want to report to someone, so these grocery stores stop price gouging.
 
Hmm...did some research on Google and realized there is a <a href="http://www.guardian.co.uk/environment/2008/apr/06/food.foodanddrink">global shortage</a> of rice right now. That may explain the price bumps in the last two weeks. People are actually rioting in some parts of Asia due to sticker shock.
 
tulip,



That kind of price hike may not be gouging by the store, but farther up the line. The increase may also have been rising in between bulk purchases by the store chain itself.



Example: Last July they bought 200,000 tons for $17 a pound, but it took until 4 days ago for them to run out of the rice they purchased at that price. The new price they pay for rice is $37 a pound, even though they buy another 200,000 tons. That higher priced rice hits the shelves at the same mark-up ($3) they need to make a profit, not because they decided to rip-off their customers.
 
Since, oh I don't know, 1972 or so, there has been excess capacity to produce consumable calories on the planet. Big time. Based on the total global diet (then), it was like 40% overcapacity, if I remember my reading in an Ag Econcomics class from 18 years ago correctly. And then it got worse. We got more productive as farmers, yealds continued to climb, yet global demand grew at a smaller rate. Oversupply+limited demand+strong US currency = low food prices.



It's not 1990 anymore. The price increases are legit, here to stay, and will get worse. From today's OC Regester:



http://fastfood.freedomblogging.com/



"Price Gouging" is where pepole jam the price in the absence of supply, like after a earthquake or a flood or hurricane. You can call and complain, but the person who will take your call is going to politely take your information, then get off the phone and laugh at you. It's not a crime to charge market price when your supplier doubles your input cost.



Some of the users here know that I have an agricultural background. Growers had record profits last year (which makes headlines), but barely broke even every year since 1970. I tried to make a living my whole adult life previous to 2002 in California Agriculture. It was an impossiblity due to my poor timing. Had I started in 2004 like my brother did (he's ten years younger) I'd of made it. I'll be honest - most days I don't care a lick, but some days I get homesick and turn green with jealously. Usually those spells involve burbon, so you can read into it what you'd like.
 
Here you go Tulip, from Financial Times. <strong>The price of rice skyrocketed 30% in ONE DAY!</strong>



<img src="" alt="" />http://www.ft.com/cms/s/0/425a0e2e-fc6a-11dc-9229-000077b07658.html<img src="" alt="" />





Fears of unrest rise across Asia as rice price surges 30% in a day



By Javier Blas in London and Daniel Ten Kate in Bangkok



Published: March 28 2008 02:00 | Last updated: March 28 2008 02:00



Rice prices jumped 30 per cent to a record high yesterday, raising fears of fresh outbreaks of social unrest across Asia, where the grain is a staple food for more than 2.5bn people.



The increase came after Egypt, a leading exporter, imposed a formal ban on selling rice abroad to keep local prices down and the Philippines announced plans for a major purchase of the grain in the international market to boost supplies.



Global rice stocks are at their lowest since 1976. While prices of wheat, corn and other agricultural commodities have surged since late 2006, the rice prices increase started in January.



The Egyptian export ban formalises a previous poorly enforced curb and follows similar restrictions imposed by Vietnam and India, the world's second and third-largest exporters.



Cambodia, a small seller, also announced an export ban.



These foreign sales restrictions have removed about a third of the rice traded in the international market.



Chookiat Ophaswongse, president of the Thai Rice Exporters Association, said: "I have no idea how importing countries will get rice." He forecast prices would rise further.



The Philippines, the world's biggest buyer of the grain, said it wanted to purchase 500,000 tonnes after it failed to buy a similar amount this month. It is struggling to import 1.8m-2.1m tonnes to cover a production shortfall and yesterday confirmed it would tap emergency stocks maintained by Vietnam and Thailand.



Rice is also a staple food in Africa, particularly in small countries such as Cameroon, Burkina Faso and Senegal, which have suffered social unrest because of high food prices.



Thai rice, a global benchmark, was quoted yesterday at $760 a tonne, up 30 per cent from the previous daily quote of about $580 a tonne, according to Reuters data.
 
Thanks for all the info...



If this is the case, then how come Costco price of rice is still the same as last month?
 
Well it depends on their inventory. In a nice world, they would charge you based upon what they paid for that particular bag of rice. This is why people argue that the gas stations gouge us. They use the "higher cost of oil" as scare tactics to justify increases in gas prices; however, that crude oil that is pulled out of the ground now won't be refined and ready to go into your car as gasoline for months!
 
Then let them keep the rice....there are other foods, beside it is time to go on a diet anyway.



For us younger generation, we can go without rice for months on end, but it is hard for the older generation, because they are so used to it, and to see a price hike like that it would hurt their wallet.



Since price of rice raise 30%, causing the doubling of price in a bag of rice, do we expect beer to rise as well?
 
[quote author="tulip" date=1207560007]Then let them keep the rice....there are other foods, beside it is time to go on a diet anyway.



For us younger generation, we can go without rice for months on end, but it is hard for the older generation, because they are so used to it, and to see a price hike like that it would hurt their wallet.



Since price of rice raise 30%, causing the doubling of price in a bag of rice, do we expect beer to rise as well?</blockquote>


Let us pray that doesn't happen with the beer. Us younger generation cannot go without beer for months on end!!
 
This is good news for my former customers who grow rice in the Davis/Colusa/Yuba City/Sacramento area.



The US is a big exporter of rice (and potentially much bigger), but is usually held down by restrictive import policies by other counties. Thanks to commodity prices and other governments actions, it won't matter. Looks like 1972 all over again, and I'm not talking about Iraq or the price of oil.



Tulip:



The short answer to your Costco question is "futures contracts". Commodity markets are for suppliers/buyers to lock in prices, although lately you'd think they were for speculators.



The new forum spell check ROCKS.
 
[quote author="halfnote19" date=1207561705]I am assuming this is going to affect sushi and saki? ='(</blockquote>


%wise, it won't be such a big deal with those two. . . they're probably going to be infinitely more screwed by the bad economy than by rice price.
 
Well, I just went to $5 dollar sushi at Mosun last night, so no price difference there. Also most beer is made with hops and malt barley not rice. I think the asian beers may be made with rice though.
 
[quote author="tulip" date=1207559229]Thanks for all the info...



If this is the case, then how come Costco price of rice is still the same as last month?</blockquote>


It's not just price, but size. For example, at TJ's some of the products we purchase are still the same price, but less product is in the box.
 
Has anyone notices that the price of everything has gone up? What does this all mean? is inflation getting out of hand? will the fed start raising the rate and kill the house market?



all i know is that i paid 10 bucks for a slice of pizza, small salad, and a soda in SJ. and i pay about 6.5 for the same thing down in oc. i use to pay like 5 bucks less then a year ago. so is the fed trying to inflate the debt away?
 
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