KUALA LUMPUR (Sept 19): Deputy Minister of Agriculture and Food Security Chan Foong Hin, has called for a significant shift in local white rice pricing, advocating for a floating price determined by current market conditions.

Chan pointed out that white rice has been subsidised by the government and has remained at a controlled price of RM2.60 per kg since 2008. Meanwhile, imported rice prices have surged from US$400 to US$620 per tonne during this period.

"I personally do not agree with the idea of having two different prices for imported white rice and local white rice in the market," he told The Edge when met at Parliament on Tuesday.

"Selling local white rice at RM2.60 is a form of oppression against our local farmers. If we aim for long-term self-sufficiency but do not allow our farmers to earn a decent living, who will be willing to produce local white rice?"

Chan emphasised that food inflation in the country remains low due to extensive government subsidies. In his view, the rationalisation of subsidies is the way forward, but it must be executed in a phased manner.

Malaysia is currently grappling with a disruption in locally produced rice supply, leading to the government's imposition of a 100kg purchase limit for locally produced white rice.

Meanwhile, the nation's sole rice importer, Bernas, has raised the price of imported rice to RM3,200 per tonne, up from RM2,350. This increase is attributed to factors such as a weakening currency exchange rate, high operating costs, and the impact of India's white rice export ban announced in July.

Chan reiterated that the local rice supply issue would be resolved within one month, coinciding with the upcoming local paddy harvest season. During this time, the local white rice supply is expected to stabilise.

"In addition to the upcoming harvest season for domestic white rice next month, we anticipate that India will soon resume exporting white rice. This will lead to a drop in imported white rice prices, subsequently stabilising the white rice supply," he added.

Chan clarified that the current disruption in local white rice supply is a result of the increased prices of imported white rice, which has triggered panic buying of local white rice.

"Yes, you hardly find local white rice in supermarkets, and we acknowledge that. However, to claim that there is a shortage of rice supply to the extent that you can't even purchase white rice is too far-fetched," he said.

He stressed that the issue is more about price affordability than a lack of availability. He also stressed that the current domestic stockpile can sustain the nation for up to five to six months.

Agriculture and Food Security Minister Datuk Seri Mohamad Sabu has said that Malaysia currently possesses a total of 900,000 tonnes in rice stockpile, with 250,000 tonnes owned by the government, and the remaining 650,000 tonnes comprising commercial stock.

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