Calif. drought may increase Calrose rice prices further

As the merciless drought in California continues, the cost of Diamond G Calrose rice on island is expected to rise.

“The drought has caused rice prices to rise. And it is a big increase,” Clarence Tenorio, head buyer and wholesale manager at J.C. Tenorio Enterprises Inc, said.

In January this year, Joeten sold a 50-lb Diamond G rice for $25.99, according to Tenorio. But now, he said, the competitive price hovers around $33.99 to $34.99.

It has risen incrementally this year; first in January, then again in February, March, and April, according to Tenorio.

Just on the retail side, this is a 30-percent increase, he said.

With an anticipated new crop to be priced around the end of this year or the beginning of next, Tenorio believes Saipan is “almost guaranteed a higher price” of rice.

As few as 50,000 acres of California’s rice farms may be flooded this year because of water restrictions, according to the California Rice Commission. Typically, 250,000 to 300,000 acres of rice farms are flooded each year, according to the commission.

California farmers have planted 25 percent less than last year, according to the commission.

Ongoing is a promotion period that began on 0ct. 27 and ends on Nov. 21, according to Tenorio. The period allows buyers in the region to avail of the old crop from the previous harvest in California. He expects some reductions in prices during this period, possibly “one or two dollars off the bag.”

Tenorio said he would hate to see prices at $40 next January but, he said, “you never know.” He called it “unfortunate,” as rice is such a staple part of the diet on island. Restaurants, vendors, and hotels use Diamond G rice especially, he said.

He has been a buyer at Joeten for the last 15 years, and he’s never seen it this bad in California, he said.

“This is three years, it’s hard hit. I’ve tried to mitigate it by bringing in rice from other places…but people prefer the [Diamond G] brand. It is just that strong,” he said.

During the spring Joeten brought in “Sunwhite” rice from Australia, according to Tenorio. It sells for 25 percent less than Diamond G, Tenorio said.

The historic drought in California has sharply reduced crop production, according to the Associated Press. It said 95 percent of the state is in “severe” or “exceptional” drought.

Like Joeten, Twins Supermarket has also raised its prices. Last year, Twins sold Diamond G rice at $28.99 per 50 lbs. Now they sell it for $32.99.