USDA's Schafer reassures no rice shortage

By Carey Gillam

KANSAS CITY, Missouri (Reuters) - U.S. Agriculture Secretary Ed Schafer on Thursday sought to calm the frayed nerves of consumers, saying there was no shortage of rice in the United States even as a major outlet limited sales.

He also said the surge in rice prices to record highs at the Chicago Board of Trade, the world's largest grain exchange, could be attributed, in part, to speculation about future rice shortages.

"We don't see any evidence of the lack of availability of rice. There are no supply issues," he told reporters after addressing a conference on agro-terrorism in Kansas City.

"Part of the price issue is speculation because we're so close to capacity...that if something disrupts it like the weather pattern then you can start seeing some supply issues.

"But today there are no supply issues that we see in the marketplace or in the foreseeable future," he added.

Schafer's remarks come one day after retail giant Wal-Mart Stores Inc's Sam's Club warehouse division said it is limiting sales of several types of rice. A day earlier, Costco Wholesale Corp. said it was seeing increasing demand for items like rice and flour as customers stock up.

Export curbs by suppliers like Vietnam, India, Cambodia and Egypt to ensure sufficient domestic supplies have helped to push rice prices to record highs, with values in top exporter Thailand surging to $1,000 a ton.

Fears over shortages have sparked food riots in Africa and toppled the government in Haiti.