THE rice supply in Penang is currently facing a serious shortage amid claims that some traders are stockpiling to sell at higher prices to foreigners, the Consumer Association of Penang (CAP) said.

Its president Mohideen Abdul Kadir said their survey showed that shelves in supermarkets were empty.

“There are claims that some traders are stockpiling local rice and selling it at a higher price, up to RM30 per 10kg, to foreigners while the price set by the government is only RM26.00.

“Such a situation shows Malaysia’s vulnerability to food insecurity that has been festering for decades in a quest for ‘development’.

“In the 1970s, domestic production met 75% of rice demand in the country. However, in recent years it can only produce between 60 and 65% of local rice demand,” said Mohideen.

He said attempts to manipulate the market will not be successful if the government takes necessary action.

He added that authorities must be vigilant and crackdown on those manipulating the market for profit.

“If monitoring by the authorities is lax, irresponsible elements will exploit the situation and manipulate the market to make more profit.”

“CAP is urging the Domestic Trade and Cost of Living Ministry, and the Agriculture and Food Security Ministry to resolve the shortage of local rice immediately,” Mohideen said.

The country’s supply situation came under scrutiny after Padiberas Nasional Bhd (Bernas) announced last Friday it had raised the price of imported white rice at all its warehouses nationwide to RM3,200 per tonne, from RM2,350 per tonne, effective immediately.

The price adjustment was done in line with the latest pricing of imported white rice in international markets, it said in a statement.

Despite the 36% increase, Bernas said Malaysia’s import prices remain the lowest among Southeast Asian countries. –  September 8, 2023.