No plans to increase price of local rice
New Straits Times - 01 Apr 2008
KUALA LUMPUR: The price of local rice will not be raised despite a surge in global prices, Datuk Seri Najib Razak said yesterday. The deputy prime minister said the government was monitoring the situation to ensure enough stocks for domestic consumption. "At the moment, there are no plans to increase the price of rice. But, obviously, we have to look in terms of supply to make sure there is enough," he said after launching the prospectus of investment holding company Dayang Enterprise Holdings Berhad here. On whether Malaysia would face difficulty securing rice supplies should world prices continue to rise, Najib said efforts must be taken to increase output. "We know the market is tighter now, so we will have to step up efforts to increase output as part of the stockpile." Most of Malaysia's rice supplies will be sourced from rice-exporting countries in the region but domestic yields should also be increased, he said. But boosting local production would take time, he said. Locally-produced rice is heavily subsidised. Prices worldwide have increased as much as 50 per cent over the last two months and are speculated to go up by a further 40 per cent in the next few months unless supplies are increased. Malaysia imports rice from neighbouring 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. The effects are being felt in Asian countries, where rice is a staple food for 2.5 billion people. Economists are blaming the upswing on rising oil and fertiliser costs, and damaged crops due to climate change, disease and pests.