The hike in price of imported white rice by Padiberas Nasional Bhd (Bernas) and an export ban are among several factors that have led to the current shortage.
FMT takes a closer look at the issue.
Price hike by Bernas
Malaysia relies heavily on the import of rice to meet local demand. Data from the agriculture department shows that in 2018, Malaysia imported 776,000 tonnes of rice. The figure increased to 1.13 million in 2022.
Multiple external factors such as climate change, weakening foreign exchange rates, high operational costs, and regional conflicts saw Bernas announce a 36% hike in the price of imported white rice on Sept 1.
On top of that, beginning July 20, India, the world’s largest exporter of rice, imposed a ban on the export of its non-basmati white rice.
The combination of these factors forced Bernas to raise the price per metric tonne of imported white rice from RM2,350 to RM3,200.
As a result, the price of a 10kg bag of imported white rice jumped from RM34 to RM39.
In contrast, a similar bag of locally produced white rice costs only RM26 due to a price ceiling set by the government.
Lift white rice ceiling price?
Ameer Ali Mydin, managing director of the Mydin retail chain, believes the solution is to push up the ceiling price of locally produced white rice.
He said the RM13 difference between local and imported rice has driven locals who used to purchase imported white rice to look for cheaper options.
“When you have this disparity in pricing, obviously it’s not going to work for you.
“So my suggestion is to balance the situation. If you bring up the ceiling price to RM34 you will reach a balance.
“It will actually balance it back to its original status where local rice was RM26 and imported rice was RM32, (maintaining) a RM6 disparity in pricing,” he told FMT.
Amir’s proposal was echoed in Parliament by Titiwangsa MP Johari Ghani on Monday.
Meanwhile, agriculture and food security minister Mohamad Sabu said the government will be implementing a special programme aimed at increasing the production of local white rice, but warned that consumers will most likely still experience shortages.
Ameer said his chain presently requires 17,000 bags of local rice a week, but last month, it was getting as few as 300 to 500 bags weekly.
“Now with government intervention and the few things they are doing, we have reached about 1,500 to 2,000 bags a week,” he added.
Food policy desperately needed
The rice shortage has brought into focus the need for Malaysia to step up its measures to ensure food security.
Fatimah Mohamed Arshad, a researcher at Universiti Putra Malaysia’s Institute of Agricultural and Food Policy Studies, said there is a dire need for Malaysia to institute a “food first policy”.
“Resources should be steered towards food sector development for food security and poverty reduction,” she said.
To enhance productivity and reduce costs, Fatimah said the country should allocate research resources, adopt advanced technologies including artificial intelligence and precision farming, and prioritise local production of essentials like fertilisers.
She also called for small farms to be offered support in the form of digital tools and resilient seeds, and foster industry-wide competition in every segment from input sourcing to retail.
Fatimah said that this was the only way Malaysia can achieve its “long term objectives” of ensuring sustainability, resiliency and equity in the food sector.
The government is currently looking into an initiative which will allow padi to be harvested five times every two years. The new method is already in use in Sekinchan, Selangor.