PETALING JAYA: A maximum purchase limit and an increase in production are among the moves taken by the government to address the shortage of locally produced white rice.
The Agriculture and Food Security Ministry (KPKM) said it has held engagement sessions with industry players such as manufacturers, wholesalers, retailers, as well as food operators and food entrepreneurs.
“Under the local white rice special programme, rice manufacturers have agreed to increase production by 20%, totalling 23,000 tonnes per month – or 2.3 million 10kg bags – that will be distributed in phases.
“Both the Federal Agricultural Marketing Authority (Fama) and Farmers’ Organisation Authority (LPP) will be selling local rice at their outlets by this month,” it said.For a start, Fama will receive 400 tonnes of local white rice to be distributed to 416 outlets, while LPP will distribute 300 tonnes to 40 farmer outlets.
According to the ministry, the shortage is not only due to panic buying but also the result of a domino effect caused by India’s suspension of rice exports and the depreciation of the ringgit.
“This has led to an increase in the world’s imported rice prices from US$400 per tonne to US$620 per tonne.”
The government had to implement a price adjustment on Sept 1 to cushion the impact of this rise.
Padiberas Nasional Bhd (Bernas) announced a price hike for all imported white rice – from RM2,350 to RM3,200 per tonne as of Sept 1. KPKM said if Bernas had not done that, it would be making losses of RM80mil per month.
“Consumers tend to buy local white rice that is cheaper because its price is controlled by the government at RM2.60 kg.
“Malaysia currently has the cheapest locally produced white rice in the South-East Asian region,” Bernas said.
The government is also striving to ensure the country’s local rice supply reaches a 100% self-sufficiency level (SSL), with various programmes.
Meanwhile, the Domestic Trade and Consumer Affairs Ministry (KPDNHEP), under Ops Jamin, has been monitoring the supply chain to ensure there is enough locally produced rice.
“Our enforcement officers monitor and remind all mills, wholesalers and retailers that they should not manipulate sales of the locally produced white rice.
“The rice should not be labelled as imported white rice and sold at higher prices. Such an action will be severely dealt with,” said the ministry’s enforcement unit deputy director of operations Shamsul Nizam Khalil.
“We will not tolerate such profiteering,” he said.
KPDNHEP secretary-general Datuk Azman Mohd Yusof said his ministry’s role is to monitor the supply chain and prices.
“All cases (with regard to rice supply and sale) will be referred to KPKM unless it falls under our jurisdiction. Our officers have been on the ground every day, visiting all premises to ensure there is no profiteering or hoarding,” said Azman.
