Channel NewsAsia 3 Apr 08;
SINGAPORE: Senior Minister of State for Trade and Industry S Iswaran on Thursday said that Singapore has an ample supply of rice, and urged the public to brace itself for further possible price increases.
Recent price hikes and restrictions imposed by rice-exporting countries have caused some concerns among Singaporeans.
According to NTUC FairPrice, sales of rice have risen 30 per cent at all its outlets since 1 April. It added that it is constantly replenishing stocks at outlets where the demand is high. However, further price hikes can be expected.
Mr Iswaran said: "The price is going up. It's a global phenomenon and as a small importing country, Singapore, really we have to accept there's going to be higher prices. And we're not going to control the price because that would harm our importers and that would (further) affect our supply of rice."
For low-income Singaporeans, who will feel the pinch the most if prices go up further, the senior minister of state said assistance is available.
He said: "We already have the growth dividends and the GST offset credits that are coming on stream - growth dividends in April and October, the second instalment of the GST offset credits in July this year.
"So with these, most should be able to manage and there will be more targeted help for those who need it through our CDCs (Community Development Councils) and ComCare schemes."
NTUC FairPrice said that in order to stabilise prices and the supply of rice, it needs to have a diversification of sources.
NTUC FairPrice's director of integrated purchasing, Tng Ah Yiam, said: "It's important that our shoppers should buy according to what they need, and I think it's not advisable to actually... keep rice for too long a period. Normally (it is alright to keep) for two to three months, but not anything longer than that."
Currently, Singapore has enough rice in its reserves to last about two to three months. For every kilogramme sold, two kilogrammes are stored in the national stockpile. - CNA/ac
Ample supplies of rice available in the shops
Jessica Lim, Straits Times 4 Apr 08;
Prices likely to rise in the short term, but Government says there is no shortage
THERE is no shortage of rice. There is no need to worry. And there is no need to rush out and buy more than you need.
For the second time in under a week, Mr S. Iswaran assured Singaporeans yesterday that stocks are ample and likely to remain so as imports are arriving as usual.
The Government will not set a price cap on rice, he said, because that would only hamper importers from going out to secure supplies at a time of rising prices worldwide.
But consumers can expect prices to rise in the short term.
'It's a global phenomenon and as a small importing country, we have to accept there's going to be higher prices,' he said.
'And we're not going to control the price because that would harm our importers and affect our supply of rice.'
The Senior Minister of State for Trade and Industry spoke to reporters at a Pasir Panjang warehouse which stores part of Singapore's three-month rice stockpile.
He said there was no need to draw on the reserves and if the situation reached that point, the Government would announce it.
More than once, he urged people to stay calm and his advice was simply this: 'Buy what you need.'
He said that Singapore gets a lot of its rice from Thailand, the world's largest exporter.
As a proportion of Thai exports, Singapore requires a relatively small amount. It also tends to buy the higher grades of Thai rice, which have not been subject to export curbs.
'As long as we are able to pay the market price, we will be able to get supply,' he said.
A 5kg bag of Thai fragrant rice has gone up by 60 cents from $4.70 to $5.30 in the shops.
Mr Iswaran said Singapore traders also buy from a wide range of countries worldwide.
Checks at supermarkets yesterday showed that many people were not yet heeding the advice to stay calm and were buying more than usual.
At NTUC FairPrice's Toa Payoh Hub outlet yesterday afternoon, the rice shelves went bare in mid-afternoon, but were restocked soon afterwards.
Said mother of three Lye Geok Yong, 45: 'I bought one extra 5kg bag because I want to stock up and save a little money. People were buying, so I also bought.'
MP for Ang Mo Kio GRC Lee Bee Wah said it was nothing more than 'herd mentality' at work.
Opting out of the mad dash was Ms Sherrie Chan, 37, a mother of two whose family takes three months to go through a 10kg bag.
She said: 'What's the point of buying so many bags of rice? It will just be eaten by weevils.'
Mr Iswaran said what the Government is concerned about, is the effect of rising prices on low-income families.
They should get some relief from growth dividend and GST offset payments coming their way this year.
But his ministry will also work with the Ministry of Community Development, Youth and Sports to help those in difficulty.
Also urging people not to buy more than they need was Consumers Association of Singapore chief Seah Seng Choon.
'Consumers should wait for the storm to clear and buy only what is needed in view of the current unusual high prices,' he said.
'Our rice bowl is safe': Iswaran
Neo Chai Chin, Today Online 4 Apr 08;
Govt may give targeted help so poor can cope with food costs
EVEN as the Government prepares to help Singaporeans who are struggling with spiralling prices of staples like rice, it reiterated yesterday that there was no shortage of the prized grain here.
Speaking to reporters against a backdrop of bountiful rice sacks at a Pasir Panjang warehouse, Senior Minister of State for Trade and Industry S Iswaran said the Government could "give more targeted assistance" to the poor via an adapted ComCare scheme.
"We're working with the Ministry of Community Development, Youth and Sports to see how we can adapt that scheme ... It's something that we're looking at and will put in place in short order," he said. ComCare currently includes schemes such as public assistance, kindergarten subsidies and work support.
Mr Iswaran was quick to calm fears that Singapore is caught in a rice supply crunch, as China, Vietnam and India have cut exports recently.
Singapore's three rice warehouses stock at least three months' worth of supplies and our imports are only a fraction of total world demand. Singaporeans also prefer high-quality varieties like fragrant rice, where there is less worry of a shortage, he said.
Citing Thailand, a major source, he said: "We tend to buy the higher grade of Thai rice. These are not the areas where they are constraining exports as much as some of the lower-end varieties."
Importers like Saga Foodstuffs Manufacturing have also secured contracts to ensure a smooth supply of rice.
In light of rising world prices, which hit a record high yesterday, Mr Iswaran maintained that domestic price controls were not an option. If local rice traders sell their imports at a loss, they would be unable to buy more rice in the world market, he explained.
On the industry's part, NTUC FairPrice, Singapore's largest supermarket chain, said it would stave off price increases for as long as possible. Any increases would also be staggered to help consumers cope, said Mr Tng Ah Yiam, FairPrice's director of integrated purchasing.
"We have to adjust prices accordingly, depending on the price from the source. So far, we have been able to keep the price 10 to 15 per cent lower than any other national brand," he said.
there's No point hoarding rice
Don't panic if you see the shelves empty of rice at your nearest supermarket. Rice sales at NTUC FairPrice's 80 outlets have shot up by 30 per cent in the last three days – due to concerned shoppers stocking up – but there's no cause for worry, said Mr Tng Ah Yiam, director of integrated purchasing for the supermarket chain.
FairPrice imports 80 per cent of its rice directly and, like other rice traders, stockpiles at least twice its monthly import quantities. Trucks now deliver rice up to twice a day to its outlets.
Advising consumers to buy only what they need, Mr Tng said: "Humidity in homes is high and weevils will grow if rice is kept for too long."
