THE price of imported rice, premium fragrant rice as well as white rice, will increase by 4% in the next few months, said local wholesalers and merchants.

Padiberas Nasional Bhd (Bernas) informed them of the price hike last month but the change is not reflected currently in the market as Bernas has sufficient stock of imported rice.

THC Rice Sdn Bhd managing director Ter Thian Tin told The Malaysian Insight that imported rice increased from RM2,150 to RM2,250 per tonne on February 15.

Imported rice is sourced from Thailand, Vietnam, Pakistan, India, and Myanmar.

“Demand continues to increase but the market is in short supply. Not only that, but the price increase of fertiliser, labour and transportation costs will lead to fluctuations in global rice prices,” said Ter.

“Thailand’s production has been recently affected due to political issues. Vietnam, a major rice-producing country, has faced floods in the past year.

“Vietnam still exports fragrant rice and imports white rice for the people of the country. So how could the price of rice not increase?”

On local rice, Ter said the harvest from the Kedah fields from January to February this year was below normal because of climate change, insufficient rainfall, pests and other factors that led to low yields.

“But consumers do not need to worry much about the price increase at this stage as currently, the government has set a ceiling price of RM26 per 10kg of white rice.

“The local rice producers receive various government subsidies, including grain seeds and fertilisers.

“There is a lot of competition among rice wholesalers and for the time being, they are absorbing the price increase of imported rice.”

Ter said the Agriculture and Agro-based Industries Ministry met wholesalers and rice farmers on ways to find more efficient planting methods to increase yields.

“Only by increasing yields can we reduce the need to rely on imported white rice. Unfortunately, rice farmers are still unwilling to change.

“Manual planting of seedlings slows down planting and it is irregular, the government encourages mechanised planting.

“Moreover, Malaysia seldom grows fragrant rice. In recent years, it has been researching and developing rice varieties and the results are not good,” Ter said.

Reliance on imports

Peninsular Malaysia Rice Wholesalers Association chairman Tan Swee Huat said the import of white rice has been monopolised by Bernas.

Locally grown white rice is insufficient and only supplies 60% of local demand. The balance must be covered by imported white rice. As such, Malaysia cannot escape price increases.

“The increase in international rice prices is beyond control. The pandemic has caused a 50% increase in transportation costs.

“Coupled with a severe shortage of containers, the price increase of imported rice is inevitable.”

He also said demand for white rice during the pandemic lockdowns had been stable as people increased their rice purchase for consumption at home, while restaurants reduced their orders as dine-ins were barred.

“The number of households buying white rice increased and made up for the shortfall in orders.”

The Federation of Sundry Goods Merchants’ Associations of Malaysia president Hong Chee Meng said wholesalers notified it that the price of imported rice will increase.

Grocers won’t suffer losses but will have no choice but sell according to the new prices, Hong said.

“If the price of the goods rises, we sell according to the price of wholesalers, each brand of fragrant rice and white rice price is different.”

Malaysians have reduced their rice-eating habits. Instead, migrant workers buy white rice because they need rice to replenish their physical strength, said Hong.

“Many people reduce their consumption of white rice for health reasons and substitute other staple foods, such as noodles and cereals.”

The pandemic has affected the global supply chains and Asian ports were the first to bear the brunt of severe container shortages.

Similarly, rice exporters are said to face similar stress transporting rice.

The impact of logistics interruptions on all major export ports sounded the alarm for food security in various countries. – March 6, 2021.