Channel NewsAsia 14 Apr 08;
SINGAPORE: Rice importers said they are allowed to bring in more rice this month. However, some are planning to cut their import volumes because of the high rice prices.
The prices of rice have gone up by over 80 per cent in the last three months. Many importers also cited cost issues, including transportation and storage costs, as their main worries.
A supplier said it may reduce imports by at least 25 per cent, while others said they will explore alternative sources, such as China, Myanmar and Vietnam, before deciding on their next move.
And for many importers, it is just business as usual, with no change in import volume.
But the company that sells New Moon rice, Goh Joo Hin, is bucking the trend. It has decided to import up to 50 per cent more rice this month.
Wayne Goh, CEO of Goh Joo Hin, said the company plans to bring in more rice, at least until July, because it believes the quota rules may be relaxed beyond April.
"We're taking a risk to commit three months ahead. Price right now is really high. So if in any case, prices start to decline, we still strongly believe that for brand equity, we have to avoid (getting) ourselves into an out-of-stock situation," he said.
In fact, suppliers of ponni rice are now facing the problem of not having enough stock, after the Indian government banned all rice exports, excluding basmati rice.
Shopkeeper Meena said: "We do business. Suddenly we say we don't have stock, they (customers) are surprised. They say, 'how come?' We are (a) big shop, (but) we don't have stock. So it's a problem for us."
Ponni rice is popular among Indian nationals, who say they find it difficult to switch to other types of white rice. - CNA/ac
