Malaysian PM Announces Measures to Check Rice Price Hike

KUALA LUMPUR, May 13 Asia Pulse - The ceiling price for the five per cent `Super Special Tempatan' (SST) has been fixed at RM2.80 (US$0.88) per kilogramme while the price for the 10 per cent SST rice is RM2.70 per kilogramme, effective June 1, announced the Prime Minister Monday.

Abdullah Ahmad Badawi said the move was to ensure sufficient supply of the commodity and to check the escalating price of rice following the steep increase in its price recently.

Previously, both these grades of rice were not under price control.

The government also announced the following measures, effective immediately:

* Maintaining the 15 per cent Super Tempatan rice as a controlled item with the price ranging from RM1.65/kg to RM1.80 kg according to zones;

* Floating the price of imported rice including White Thai rice in the peninsula, Sabah and Sarawak;

* Allowing the transfer of padi in stages between the states;

* Raising the Guaranteed Minimum Price (GMP) from RM650 per metric ton to RM750 per metric ton.

Abdullah made the announcement in a statement after chairing a meeting of the Cabinet Committee On Tackling Inflation in parliament, here.

The Prime Minister said the measures were taken after considering everyone's interests and to look after the welfare of the consumers as well as the padi farmers following the padi and rice price hikes.

"This means, the measures that will be taken will cost the government at least RM725 million in terms of subsidy to import 500,000 tons of rice and maintain the price at a level which will not burden the consumers in the face of escalating price," he said.

Regarding the move to raise the current GMP, Abdullah said the government felt that it was appropriate for the benefit of the padi farmers following the rise in the price of the commodity.

He said permission to allow the movement of padi between the states was to make the selling price for padi more competitive and thus help the padi farmers to raise their income.

The price of rice in the world market rose significantly with the five per cent White Thai Rice increasing 164 per cent from USD352 per metric ton last year to USD980 per metric ton currently while the Vietnam White Rice rose 212 per cent from USD352 per metric ton to USD1,100 per metric ton.

Abdullah said the price hike resulted in a shortage of supply for the 15 per cent SST which was a controlled item and rice millers were more inclined to produce the 10 per cent SST and five per cent SST which were not included in the controlled items.

As a result, the price for SST rice for both grades, which were not controlled items, rose significantly.

(BERNAMA-OANA)

Copyright © 2008 AsiaPulse Pte. Ltd. All rights reserved. Retransmission,dissemination or publication is expressly forbidden. Asia Pulse gives no warranty or guarantee as to the accuracy of the information and shall not be liable for errors, omissions, or delays or interruptions in the service.

Copyright © 2008 Yahoo! Southeast Asia Pte Ltd (Co. Reg. No. 199700735D). All Rights Reserved.
Privacy Policy - Terms of Service - Community - Help