Adequate rice supply, so no fear of shortage in Singapore: Iswaran

Singapore gets its rice from various countries, so if one source is affected, there are alternatives
By Nur Dianah Suhaimi, Straits Times 30 Mar 08;

SINGAPOREANS need not worry about that next bowl of rice despite export cutbacks amid a global shortage and demand spike.

The country's rice supply is adequate, said Minister of State for Trade and Industry S. Iswaran last night.

Importers have enough in their inventories to ensure that there is no disruption in supply.

Singapore gets its rice from various countries. This ensures that if one source is affected, there will be alternatives.

Singaporeans 'should not be unduly concerned...The main thing for us is to just carry on with life as normal', Mr Iswaran told reporters at a lighting demonstration for the Formula One night race near the Padang.

His assurance came after the country's largest supermarket chain, FairPrice, upped prices of rice for three of its house brands on Friday. It has held back on raising prices since the middle of last year when the goods and services tax (GST) went up.

Recent global grain prices have shot up by 30 per cent but FairPrice is increasing its rice prices only by 10 to 15 per cent.

Its managing director, Mr Seah Kian Peng, said it was able to moderate price rises because it imports directly from producer countries, thus eliminating middleman costs. It has also set aside sufficient stock for national emergencies and was able to draw on this.

The Dairy Farm Group, which owns the Cold Storage supermarket chain, told The Sunday Times it is also working with suppliers to ensure an adequate rice supply.

Mr Iswaran said the Government will not impose price controls as these will hurt importers.

The Minister of State, who will be promoted to the senior grade on Tuesday, noted that if there are sharp price adjustments, 'we should have measures in place'' to help, especially those in the lower-income group.

He said growth dividends - the first instalment will be paid next week and the second in October - and the second instalment of the GST offsets in the middle of the year should help many lower-income families cope.

'And if there is a need for help beyond that, we also have specific measures...We should be able to help most, if not all, Singaporeans meet any kind of short-term increase in prices.'