Increase local rice ceiling price to curb shortage, Mydin boss tells govt

 

Mydin hypermarket managing director Ameer Ali Mydin said the current low ceiling price of RM26 per 10kg is discouraging millers from producing white rice for the local market.

PETALING JAYA: Ameer Ali Mydin has called on the government to increase the ceiling price for local white rice to RM34 per 10kg to overcome a shortage in its supply.

The Mydin hypermarket managing director said local millers were being discouraged from producing the rice due to its current low ceiling price of RM26 per 10kg.

“This move would improve cost structures for producers and help alleviate shortage. It’s a better solution than trying to maintain the price at RM26 (since) supplies still run dry,” he said.

Ameer also said the government’s recent move to allow restaurant operators to buy imported white rice at wholesale prices was unwise, warning that it would benefit bigger businesses at the expense of small traders.

He said the decision to issue restaurant operators with licences allowing them to purchase the imported rice at a wholesale price of RM3.20 per kg from Padiberas Nasional Bhd (Bernas) was unfair.

“Solutions must be simple, fair and (should not) lead to abuse. We don’t want another monopoly,” he told FMT.

Agriculture and food security minister Mohamad Sabu had announced the decision on Sept 24, describing it as a short-term measure to overcome the current shortage of local white rice.

The minister also said purchases of imported rice had been decreasing due to rising prices.

However, Ameer said more details on the initiative were needed to ensure proper implementation.

“How will the government ensure that food operators will be given preferential pricing? Malaysia is a big country with food stalls all over the place.

“What about the canteen operators and small traders, like those who offer the Menu Rahmah,” he asked, referring to the RM5 set meal initiative introduced earlier this year to help reduce the cost of living.

He also asked how the government will maintain the RM3.20 per kg price tag on imported white rice, given that local variety is already priced at RM3.10 per kg.

Ameer warned that the roll out of the initiative could become a “logistical nightmare” as big distributors normally deliver to wholesalers and shops, and not directly to restaurants. - FMT