Analysis this warehouse issue *** Assuming each warehouse has about 3000 bags of rice.. It is believed that each state has a ware house, some are even rumored to have more than 1..if you multiply by 36 you'll get 108000 thousand bags of rice...

What this means is that 108000 bags of rice has been taken of the market and kept away there by creating an artificial scarcity in the market.. Now in simple economics.. Drop in quantity supplied and increase in quantity demanded drives the price of that commodity up

Now you understand why the prices of rice in the market suddenly went overboard...