DESPITE getting caught off guard following the move by Padiberas Nasional Bhd (Bernas) to hike the price of white rice, restaurant operators are still selling meals at regular prices.

The Malaysian Insight was informed that many restaurant owners are still serving white rice at existing prices without a reduction in portions served to customers.

While they said they are willing to absorb the price increase for now, although they could not guarantee prices would remain the same in the coming weeks.

The country’s rice supply came under scrutiny after 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.

Malaysian Indian Restaurant Owners Association deputy president, C.Krishnan revealed that the organisation would take a “wait and see” approach before taking any measures.

He added that there is no plan to increase food prices saying that Indian restaurant owners are advised to avoid wastage in their daily operations.

“There are several issues plaguing rice supply. For example, India has stopped exporting white rice except for Basmati rice and suppliers have increased their prices.”

“We will wait and see and will not be increasing prices as there are some other things we can do to address the issue.”

“Prices can change at any time so we advise our members to avoid wastage. Portions can be according to what customers request.”

“If they want half a portion then we give them half, to avoid the food being wasted,” he explained.

Some 12,000 operators of Indian Muslim restaurants around the country, whose businesses rely on imported white rice, are holding out for the time being.

Malaysian Muslim Restaurant Owners Association (Presma), said they are still selling meals at existing prices without a reduction in portions served to customers.

Presma president Jawahar Ali Taib Khan said the situation would affect the profit margin of its members if measures are not put in place to cope with the price hike or increasing production of the staple food locally.

“If possible, we want to ensure there is zero increase (despite the move by Bernas to hike the price of imported white rice).

“However, this is not a sustainable long-term solution. Something needs to be done to increase the food security of the country,” he was quoted as saying in a report.

Last Thursday in an effort to address the shortage of locally-produced rice, the government implemented a restriction on the sale of local white rice, limiting purchases to 100kg per customer.

The Agriculture and Food Security Ministry’s Agricultural Industry Development Division secretary Azman Mahmood said this purchase limit would be in place until the supply of local white rice stabilises.

Addressing concerns about local grocery stores experiencing shortages of local rice, Azman said the first phase of the purchase limit would start tomorrow, and the second phase would begin on September 15.

“The Federal Agricultural Marketing Authority (Fama) will also enforce this limit in branches and Pasar Tani starting from September 15,” he said.

Azman said the local rice supply depended on the quantity of locally-harvested paddy.

Meanwhile, a member of Malaysian Islamic Restaurant Owners Association who declined to be named expressed disappointment over the white rice issue.

The man said white rice supply is not the problem, as other items pricing is also increasing. 

“Sugar, Milo, and other items are increasing in price, not just white rice. Malaysia is extraordinary. The government knows things are getting expensive but nothing is done to address the matter.

“Milo price changes every three days, Maggi mee prices change every three days. What is happening? There is no point for us to say anything,” said the man.

A manager at an Indian Muslim restaurant in Shah Alam said, there has been no instruction to change the prices of food despite the white rice issue.

The manager, who identifies himself as Ameer, said increasing prices would drive customers away.

“We are still selling at regular prices. There have been no changes and there is no plan to change it. 

“We are still using the same high quality ingredients in our menu despite the price hike,” said the manager. 

Last week, Prime Minister Anwar Ibrahim said the price of local white rice has not gone up, slamming critics for giving the wrong picture about the recent price increase of the daily staple.

He said the government will continue to cap the price of local white rice at RM2.60 per kg – the lowest in the region – adding it is the price of imported rice that has increased.

“We cannot control the price of imported white rice but we will ensure the price of (locally grown) rice that locals eat cannot be increased. That is our decision,” Anwar was quoted as saying during a talk in Johor. –  September 11, 2023.