Covid-19 outbreak might lead to dearer rice

CORONAVIRUS | The price of imported rice may increase soon due to export curbs and panic buying, warned industry players.

Some of the main import sources are Thailand and Vietnam who have reigned in on exports due to the Covid-19 outbreak and drought. 

According to Malaysia Rice Wholesalers' Association president Ng Chee Len, he is unsure if the country's sole rice importer, Padiberas Nasional Berhad (Bernas), had secured enough rice before the outbreak.

Up to 40 percent of rice consumed in Malaysia are imported.

"As a business entity, Bernas should even purchase extra rice when the coronavirus first broke out early this year. A far-sighted entrepreneur should be able to make preparation in advance.

"Rice is the staple food that we can easily store as long as six months," he said.

He said if Bernas had stockpiled enough of imported rice then the people would not have to pay more for the expensive rice.

"The problem is we don't know how much stockpile of imported rice with Bernas. It won't tell," said Ng, who has been involved in the rice wholesale business for over half a century.

"Bernas never reveal the information on imported rice stocks, but our estimate is imported rice only stood below 100,000 tonnes annually.

"They should be transparent about the information," he added.

Ng said it is time for the government to open up the rice import business, to ensure the country's demand for imported rice was fulfilled.

Beside the wholesalers' association, Malay Rice Millers Association of Malaysia (PPBMM) also questioned if Malaysia has enough rice stock during the movement control order (MCO). 

PPBMM president Mohamad Termizi Yop said they don't know the whereabouts of the rice stocks despite ministers said enough of rice to meet the domestic demands.

"Our representative met the Paddy and Rice Industry Surveillance Unit, under the Agriculture and Food Industry Ministry for further explanation," he was quoted as saying by The Malaysian Insight (TMI) last week.

"However, we were disappointed that the surveillance unit has no information as to the whereabout of the rice stocks," he said in a statement, adding that PPBMM members wanted to purchase the rice from Bernas but to no avail as the rice dealer declined to cooperate.

He said PPBMM's members wanted to distribute the rice stocks to the millers and wholesalers to ensure adequate supply for all locations.

When contacted, Bernas' public relation officer told Malaysiakini to refer the question to the ministry. The ministry has yet to respond to queries.

On March 27, Reuters cited government data which suggested that Malaysia had a rice stockpile of 500,000 tonnes which would be enough for 10 weeks. 

"Bernas acted early to secure rice export contracts until May 2020 from Vietnam even though it was at a high price," said the ministry.

"Our next step is to also purchase rice from other countries including Pakistan, India, Myanmar and Thailand."

However, Agriculture and Food Industry Minister Ronald Kiandee refuted this, stating that the current stockpile stood at 523,000 tonnes and that did not take into account of stock of local rice production and imported rice which is in the country. 

In 2016, the nation consumed 2.7 million metric tonnes of rice or an average of 80kg of rice consumer per Malaysian, according to research on the status of rice and paddy published by Khazanah Research Institute in April 2019.

In June 2018, Pakatan Harapan government said it planned to terminate Bernas' import monopoly which would expire by 2021. - Mkini