PUTRAJAYA must raise the ceiling price of local white rice, which has remained unchanged for the last 15 years, said the Malaysian Rice Grain Wholesalers Association. 

The association said it had proposed to the government to increase the price by 5% (including sales and service tax) from RM26 to RM32 per 10kg. 

The association’s president Tan Swee Huat told The Malaysian Insight that a new ceiling price would benefit all stakeholders, including rice farmers, as prices of everything else had increased. 

“Rice farmers are paying higher costs now for fertilisers, pesticides, and other related expenses. If the ceiling price cannot be adjusted, it will only become more difficult to maintain,” Tan said. 

He added that the proposed move would help farmers gradually increase crop production to reduce local dependency on imported rice. 

“Without any profit, there will be a reduction in production volume and in the supply chain, which will be detrimental to the overall environment,” Tan added. 

Tan hoped the government would pay attention to the issue. 

He said the price adjustment would not have an impact on low-income groups, asserting that rice merchants would absorb part of the cost increase, and that retail prices would only increase slightly. 

Tan said his association had also urged Padiberas Nasional Bhd (Bernas) to ensure sufficient supply of white rice. 

“Local white rice can only meet 65% of the demand; the rest must be imported. Bernas, which is the sole importer of white rice in Malaysia, must ensure sufficient supply of white rice to meet future demand and stabilise market prices,” he added. 

On April 17, the association submitted a memorandum to the Deputy Minister of Agriculture and Food Security Chan Foong Hin on the proposals. 

The government had earlier established the ceiling price to ensure sufficient supply of the staple food at non-fluctuating prices.  

The price control, however, hampered the ability of rice farmers to grow their business. 

Support local rice farmers 

Federation of Sundry Goods Merchants Associations of Malaysia president Hong Chee Meng also backed the move to support rice farmers. 

He said the government should give them subsidies to increase production. 

“We need to support domestic products and local rice farmers, and not always rely on imports. Imports are more expensive,” he said. 

Meanwhile, Klang Coast Sundry Goods Merchants’ Association president Tan Teck Hock said white rice was a necessary component of the people’s diet. 

“We hope the price increase will not be too high. It will be burdensome for consumers. 

“Currently, local white rice is controlled by the government, and the price is relatively low. But after adjustment, will it be higher or the same compared with the imported kind? 

“If the prices of local and imported white rice are not far apart, I believe consumers will buy the latter.” 

He added that the current price of imported rice was between RM28 and RM29 per 10kg. – April 29, 2023.