Straits Times 1 Apr 08;
KUALA LUMPUR - AMID rising rice prices and the threat of a global shortage, Malaysia has announced it has no plans to increase domestic rice prices and will step up efforts to boost stockpiles of the grain.
It could thus join several other leading Asian importers of the staple in rushing to buy more of it on fears that dwindling supplies would lift prices further.
'We know the market is tighter now, so we have to step up efforts to increase the supply of rice as part of our stockpile. We have to source around the region,' said Deputy Prime Minister Najib Razak yesterday.
Shortages in the region have triggered panic buying, while rice-producing countries are increasingly curbing exports to ensure adequate domestic supply.
Yesterday, Vietnam, the world's third-biggest rice exporter, said it will cut shipments by 11 per cent this year to four million tonnes, while Bangladesh announced it was planning to import 400,000 tonnes of rice from India.
India, meanwhile, said it would release stockpiles to fill warehouses with 22 million tonnes of rice and 5.5 million tonnes of wheat by tomorrow.
And the Philippines, the world's biggest importer, said it would buy 163,000 tonnes of rice to resell to millers, farmers and traders.
The country also intends to boost rice production by 7 per cent this year, and is in talks with some neighbouring countries to secure additional supplies.
Philippine investigators also raided rice warehouses in a crackdown on hoarding, and in one case, caught a warehouse repackaging 20,000 50kg bags of rice from subsidised government supplies to sell at higher prices.
World rice inventories now stand at around 72 million tonnes - the lowest since the mid-1970s.
REUTERS, BLOOMBERG
Malaysia won't raise price of rice
Today Online 1 Apr 08;
KUALA LUMPUR — Malaysia has no plans to raise the retail price of rice, but efforts are underway to ensure adequate rice stockpiles in case of a shortage of supply.
Deputy Prime Minister Najib Razak said yesterday that the government regulates the price of rice, which is one of the essential items it subsidises. It also gives financial aid to rice farmers, who produce about 70 per cent of Malaysia's rice needs.
Rice prices on world markets have jumped 50 per cent in the past two months and at least doubled since 2004.
"Now, there is no plan to increase the price of rice but obviously, we have to look in terms of supply to make sure there is enough stockpile in the country," Mr Najib said.
Malaysia imports rice from countries such as Thailand, Vietnam and Cambodia. But rising prices and worries over domestic supply have forced major rice exporters including Vietnam, Cambodia and India to curb overseas sales recently.
"We will have to step up our efforts to increase the supply of rice as part of our stockpile. We will have to source around the region," said Mr Najib.
Malaysia stockpiles rice through Padiberas Nasional, its sole rice importer and distributor. Critics said the agency has not built a sufficient reserve to meet a possible shortage. There are concerns rice prices could rise a further 40 per cent in coming months. — AP
