PETALING JAYA: Imported white rice will get more costly going by past trends on global prices, says the Agriculture and Food Security Ministry.
“The trading price is about US$700 (RM3,272) per tonne now. We anticipate that international rice prices will continue to rise,” said the ministry’s Agricultural Industry Development Division secretary Datuk Azman Mahmood.
He pointed to the historical context of rising global rice prices, particularly during the 2008 global rice crisis when the international trading price of rice soared to at least US$1,000 per tonne within four months.
The price hike, he said, was caused by various factors.
“It is a global issue that we cannot control,” he said.
On Sept 1, Padiberas Nasional Bhd (Bernas) announced that imported white rice went up by 36% to RM3,200 per metric tonne.
Azman, when contacted yesterday, said the ministry was actively promoting SMART SBB Mini Sekinchan Mada-Bernas padi farming on a large scale nationwide.
This initiative aims to ensure the country’s rice supply remains sufficient, particularly in the face of potential disruptions in imports.
While Malaysia is unaffected by India’s decision to halt rice exports, he believes the country should prepare by increasing its local rice production.
“We can still import rice from Pakistan, Vietnam, Cambodia, and Thailand, but the best approach is to make our rice production self-sufficient,” Azman added.
He said the SMART SBB Mini Sekinchan Mada-Bernas padi farming plan in Kedah and Kelantan, if proven successful, would mean that Malaysia only needs to increase local rice production by six metric tonnes to meet domestic demand.
“Our ultimate goal is to achieve 100% self-sufficiency,” he said, adding that there is currently a six-month trading stock of imported white rice.
On July 20, the Indian government announced an immediate stop to its non-basmati white rice exports, primarily to stabilise prices and ensure availability within the country.
The move was driven by domestic concerns such as rising food prices, inflation, and the impact of El Nino disruptions.
However, the impact of the ban has been felt globally with rice prices on the uptrend.
When asked about rice wholesalers’ request that the government promote fair competition and explore opportunities for other companies to participate in rice imports, Azman said that Bernas held the concession for rice imports until January 2031.
Ultimately, he said the decision would be up to the Prime Minister.
Penang Rice Wholesale Association president James Tan said the government should allow for another rice importer to prevent disrupting the supply due to monopolisation.
“Bernas has held the monopoly for over two decades,” he said, adding that Bernas should take responsibility for any supply shortages.
Currently, he said, countries worldwide were preparing to address food shortages.
As such, Tan said that it was time for the government to review its policies on importing white rice and to allow more traders to engage in fair competition.
Rice wholesaler Jason Lim said he used to require 200 metric tonnes of rice every week for his business, including 100 tonnes of imported rice.
But now his factory is completely devoid of inventory, he said.
Lim said that he had faced “insurmountable challenges” over the past six months.
Local rice is priced at RM3,000 per metric tonne, he said.
“Locally produced rice, classified as a controlled item, is sold at RM26 for every 10kg. As rice wholesalers, we are operating at a significant loss,” he added.
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