Kor Kian Beng Straits Times 22 Oct 11;
ALTHOUGH the floods in Thailand are not expected to cause the price of Thai rice to soar, Singapore will keep an eye on its harvest next month to ensure supply is stable, said Minister of State for Trade and Industry Lee Yi Shyan yesterday.
In the meantime, Singapore will continue to expand its supply network by importing rice from countries like Vietnam, India and the United States, he added.
This diversification will help mitigate against any rise in the price of Thai fragrant rice, a Singaporean favourite, Mr Lee told Ms Foo Mee Har (West Coast GRC) who had asked about the impact of Thailand's floods on the rice situation in Singapore.
Since January this year, the export price of Thai fragrant rice has risen by 9 per cent, in part due to severe floods which had destroyed rice crops and hence reduced supply for export.
Mr Lee said Singapore cannot do anything about it as its imports are only a fraction of the global rice trade. Last year, it was a mere 1 per cent.
But the low level of import means local demand can be met easily by other suppliers, said Mr Lee.
Half of Singapore's rice imports come from Thailand, although this demand is less than two per cent of the kingdom's total rice exports.
Besides importing rice from various countries, Singapore is doing several things 'to mitigate sharp price spikes and possible supply disruptions', Mr Lee said.
Its stockpile policy is to keep at least two months' supply among rice sellers.
Also, his ministry is working with major supermarket chains and retailers to highlight the other types of rice that are tasty and of good quality 'as well as other non-rice staples that consumers can consider as part of their healthy diet choice'.
These steps have prevented panic in the market, he added.
Rice importers have 'healthy' stockpile
Esther Ng Today Online 21 Oct 11;
SINGAPORE - The price of Thai fragrant rice may have risen by 9 per cent since January, but Singapore's stockpile and its strategy of diversifying its rice supply sources have mitigated the effects of price spikes and supply disruptions, Minister of State for Trade and Industry Lee Yi Shyan told Parliament on Friday.
He was responding to Ms Foo Mee Har (West Coast GRC), who wanted to know the impact of the severe floods in Thailand on rice prices here.
Mr Lee pointed out that only 10 per cent of Thailand's rice-growing areas were flooded. Fragrant rice, which accounts for 18 per cent of Thailand's total rice production, has a harvest next month, while white rice, which accounts for 82 per cent of its rice output, has three to four harvests a year.
Although about half of Singapore's rice imports last year came from Thailand, it was less than 2 per cent of Thailand's total rice exports. Moreover, Singapore now imports rice from more sources such as Vietnam, India and the United States, Mr Lee said.
Also, Singapore's rice importers keep a "healthy" stockpile of two month's supply.
To better educate consumers, the Ministry of Trade and Industry, through the Retail Price Watch Group, is working with major supermarket chains and retailers to highlight the variety of rice available that are high in taste and quality, as well as other non-rice staples that consumers can consider.
As for financial speculation on commodities, it has "not been seen in our contractual purchase between importers and exporters of the supply countries", Mr Lee said.
Price, supply of Thai rice in Singapore to stay stable
Hoe Yeen Nie Today Online 21 Oct 11;
SINGAPORE - Despite severe floods in Thailand, Singapore's Ministry of Trade and Industry said the price and supply of rice in Singapore will remain stable.
Responding to a question by MP Foo Mee Har in Parliament on Friday, Minister of State for Trade and Industry and National Development Lee Yi Shyan noted that most of Thailand's rice fields have not been affected by flood waters, and the frequency of rice harvests will allow farmers to catch up.
Mr Lee also said that while Singapore has little control over global prices, its small import volume means it can easily buy rice from other countries.
He said competition among the large number of rice importers in Singapore will also prevent price shocks.
"In the local scene, we have 35 major importers, supplemented by about 70 smaller importers who purchase rice from some of the small markets like India and Pakistan. So I think we have sufficient competition within the local scene to ensure price stability," said Mr Lee.
Mr Lee inspected the nation's rice stockpile on Friday morning, and noted that stocks are ample as there is no disruption in imports.
The stockpile, comprising rice from various sources including Vietnam, India and Australia, has two months of rice supply for the Singapore market.
Mr Lee said: "There is no panic in the market because this industry ... has many buffers within each of the supply chains. For instance, we have our own stockpile, other countries do, and even the suppliers or intermediaries themselves keep a healthy stock level in terms of supply."
Price, supply of Thai rice in Singapore to stay stable
Hoe Yeen Nie Channel NewsAsia 21 Oct 11;
SINGAPORE: Despite severe floods in Thailand, Singapore's Ministry of Trade and Industry said the price and supply of rice in Singapore will remain stable.
Responding to a question by MP Foo Mee Har in Parliament on Friday, Minister of State for Trade and Industry and National Development Lee Yi Shyan noted that most of Thailand's rice fields have not been affected by flood waters, and the frequency of rice harvests will allow farmers to catch up.
Mr Lee also said that while Singapore has little control over global prices, its small import volume means it can easily buy rice from other countries.
He said competition among the large number of rice importers in Singapore will also prevent price shocks.
"In the local scene, we have 35 major importers, supplemented by about 70 smaller importers who purchase rice from some of the small markets like India and Pakistan. So I think we have sufficient competition within the local scene to ensure price stability," said Mr Lee.
Mr Lee inspected the nation's rice stockpile on Friday morning, and noted that stocks are ample as there is no disruption in imports.
The stockpile, comprising rice from various sources including Vietnam, India and Australia, has two months of rice supply for the Singapore market.
Mr Lee said: "There is no panic in the market because this industry ... has many buffers within each of the supply chains. For instance, we have our own stockpile, other countries do, and even the suppliers or intermediaries themselves keep a healthy stock level in terms of supply."
Price of rice may rise but ...
Republic safe from shortages because of strong S$, stockpiles and diversified sources
Teo Xuanwei Today Online 25 Oct 11;
SINGAPORE - The strong Singapore dollar, existing stockpiles of rice and diversified sources will buffer Singaporeans against the "serious food shortages" that the United Nations (UN) has warned will hit parts of South-east Asia.
A UN report noted on Friday that countries in the region, including the Philippines, Cambodia, Laos and Vietnam, have all lost substantial rice crops due to natural disasters in recent months. The report came as Thailand braces itself for six to eight more weeks of severe floods that have already damaged one-eighth of its rice farmland.
Economists contend that the worst case scenario for Singaporeans is a price hike, but not to the extent of the global rice shortage in 2008 which was caused by a perfect storm of factors such as drought and rocketing oil prices.
Said CIMB Research executive director Song Seng Wun: "Prices may inch up in the coming weeks and months because of supply disruptions but, because of the strong Sing dollar, a part of the hike can be mitigated."
According to latest official figures, food prices in general increased by 3.1 per cent last month, compared to the same period last year. Economists expect the rising food prices - which was a major contributor to inflation in the past year - to peak at around 4 to 5 per cent during the Chinese New Year period in January.
DBS economist Irvin Seah said: "There's not enough justification to raise the alarm right now ... Due to the slowing growth globally, there are deflationary pressures too."
Although rice export prices have climbed 9 per cent since January, major supermarket chains here told Today they have held rice prices stable for more than a year. NTUC FairPrice, for instance, even slashed prices of house brands by as much as 10 per cent.
Said FairPrice managing director (group purchasing, merchandising and international trading) Tng Ah Yiam: "As one of the major rice importers in Singapore, FairPrice stockpiles more than three months' supply of rice to ensure reliability of supply and stability of price."
He added: "In addition, prices of rice are kept stable due to our policy of diversified sourcing, forward buying, direct importing, bulk buying and contract prices with manufacturers."
Thai situation closely monitored
Last week, Thailand reportedly delayed shipments of rice by a few weeks as floods disrupted logistic systems.
According to rice importers, their suppliers in Thailand expect exports to resume after this week.
One of them, Mr Tang Teow Keng, said: "We have enough stockpile until at least January or February next year. It won't get to a stage where we will starve or be short of rice, the worst case is that prices may rise for a few months."
Last Friday, Minister of State (Trade and Industry) Lee Yi Shyan said in Parliament that the Republic will keep an eye on Thailand's rice harvest next month to ensure supply is stable.
He noted that half of Singapore's rice imports come from Thailand. But this demand is less than two per cent of Thailand's total rice exports, he added. Singapore also has a stockpile policy of keeping at least two months' supply among rice sellers. The Ministry of Trade and Industry is working with major supermarket chains and retailers to highlight non-rice staples and other types of rice that consumers can consider, Mr Lee had said.
Saga Foodstuffs managing director Goh Hock Ho told Today that unless the Thailand flood situation does not improve after a month - as his suppliers expect - there will be little impact for consumers in general.
Mr Ming Feng, from the Singapore General Rice Importers Association, pointed out that Thai fragrant rice imports can easily be substituted by supply from a range of other countries, such as the United States and India.
Still, retailers said they are monitoring closely the situation in Thailand, with Fairprice's Mr Tng reiterating that the cooperative is "committed to providing affordably priced essentials". Mr Tng added: "We will ensure that any price increase by suppliers is justified."
