Govt Shoots Down Proposal To Raise Ceiling Price Of Local White Rice

The agriculture and food security ministry says it wants to ensure the price of rice sold is not increased.PETALING JAYA: The government has rejected a proposal to increase the ceiling price of local white rice to RM34 per 10kg to overcome the shortage.
The current ceiling price is RM26 per 10kg.
The agriculture and food security ministry said its decision to allow purchases of imported white rice at wholesale prices is to allow traders to control operating costs and ensure that the price of rice sold is not increased.
“This is also to ensure that local white rice supplies can be stabilised by reducing large purchases from restaurant operators for business use, compared with those purchasing for their households,” it said in a statement today.
The ministry said the retail price of local white rice is still controlled at RM2.60 per kg in accordance with the Rice Act (Grade and Price Control) Order (Amendment No. 4) 2008, Paddy and Rice Control Act 1994.
It was responding to a proposal by Mydin hypermarket managing director Ameer Ali Mydin to increase the ceiling for local white rice because, according to him, millers were being discouraged from producing local rice due to its current low ceiling price.
“Increasing the ceiling price for local white rice to RM34 would improve cost structures for producers and help alleviate the shortage. It’s a better solution than trying to maintain the price at RM26 (since) supplies are still running low,” Ameer told FMT.
He 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.
Earlier today, Padiberas Nasional Berhad (Bernas) assured consumers that it has sufficient rice supplies.
Bernas, which has a monopoly on the import of rice, said it has distributed 630,000 metric tonnes of white rice from January to August, a 38% increase over the average monthly sales over the past five years. - FMT

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