PADIBERAS Nasional Bhd (Bernas) has announced that the price of imported rice has been raised from RM2,350 to RM3,200 per tonne.

It said in a statement today that it had been facing challenges since the first half of the year.

This, it said, was due to multiple external factors such as climate change, weakening foreign exchange rates, high operational costs and regional conflicts.

“These factors have collectively triggered a significant impact on the global rice trading market, and it was further compounded by the effect of India’s recent announcement banning the export of white rice,” Free Malaysia Today quoted Bernas as saying in the statement.

The Indian government announced on July 20 that it would stop exporting non-basmati white rice, effective immediately. The move was to help lower rice prices and secure availability in India.

In June, the Agriculture and Food Security Ministry denied that there was an increase in the price of local white rice as asserted by certain quarters.

Its deputy minister, Chan Foong Hin, said the maximum price of local white rice at the consumer level was still controlled at RM2.60 per kg, as stipulated in the provisions of the Control of Padi and Rice Act 1994.

“We have also taken early preventive measures by setting the maximum price for the sale of local white rice at RM2,250 per tonne at the factory level and RM2,540 per tonne at the wholesale level,” he said.

“This is to ensure that factories do not compete for raw materials by offering higher prices so that the chain below (wholesalers, retailers and consumers) is not affected.

“It also ensures that there is a stable supply at reasonable prices, and this intervention measure is temporary.”

Bernas also said it had been absorbing price increases of imported rice for the past few years.

It said the price adjustments were unavoidable due to the ongoing high level of uncertainty and the importance of ensuring long-term viability for businesses within the industry.

Bernas said it would work closely with the government and global industry partners so that the country’s rice supply remained stable.

“Bernas is committed to ensuring a consistent supply of rice in the country, acting as a ‘shock absorber’ to prevent the negative effects of global rice market fluctuations from affecting the nation,” it said.

“Bernas will closely monitor international market prices and adjust prices accordingly once the situation has normalised. Currently, the price of imported rice in Malaysia remains one of the lowest in Southeast Asia.” – September 1, 2023.