Rice price goes up

THE price of certain brands of white rice has gone up unannounced and the rest are expected to follow suit in the next few months.
According to a report in China Press yesterday, the margin of increase is expected to be around 50 sen a kg.

The report said although the Federation of Malaysian Rice Wholesalers had stressed that the price of rice is "under control", the price of some brands of white rice has gone up and it is just a matter of time before the price for other brands is also increased.

On July 1 last year, Bernas (Padiberas Nasional Berhad) made a surprise announcement on the price increase of all types of rice but had to retract it at the order of the Agriculture and Agro-based Industry Ministry, which intervened following a hue and cry from the public over the unsanctioned price increase.

A rice wholesaler told the daily the price of some 5kg pack fragrance rice had gone up by 10 sen a kg a week before the general election.

"As for other white rice, such as the 5% local super grade and Siam super grade, the wholesalers have adopted the wait-and-see attitude," said the wholesaler, who was not identified.

However, he said, he had been told that an across-the-board increase is inevitable and the margin can be as much as 50 sen a kg, which means consumers will have to fork out another RM5 for a 10kg pack of rice soon.

He said the increase is mainly because of poor grains harvest in Thailand and the buying frenzy in the international market.

In a knee-jerk reaction, the prices of rice-based products such as keow teow and rice vermicelli are said to have gone up by 10 to 20 sen a kg.

The federation dismissed claims of an increase in the price of rice, saying they were spread to cause confusion to create panic buying.

A spokesman for the federation said the price of super grade rice, which is a controlled item, can only be changed by the authorities concerned.

He urged the consumers not to listen to speculation of an impending hike to avoid hoarding.

Meanwhile, the Malaysian Seafood Industries Association said the rise in crude oil price and a reduction in fish catches the world over will push the prices of seafood products up by 20-50%.

Its president, Chia Yong Kiang, said the industry is already reeling from a 120% increase in the price of fish paste caused by the drop in fish catches.

He said despite a 10-30% price hike in seafood products towards the end of last year, producers were still making losses for the last three months and some small operators were forced to close shop.

Speaking to the press afterthe association’s anniversary dinner in Johor Baru on Sunday, Chia said the producers will have no choice but to pass part of the increase in production costs to the consumer.

He, however, urged members to keep the margin of increase within 50%.

Kong See Hoh
Sun Online