|
ESSENTIAL OR ESSENTIALS: Mr Iswaran reiterated that Singapore has enough rice despite the global rice squeeze. The Government's timely action to allow more import flexibility has helped. -- ST PHOTO: AZIZ HUSSIN
|
|
|
WITH greater flexibility being given to importers, Singapore has now been able to build up a slightly larger buffer stock of rice, Parliament was told yesterday.
Although there were no immediate details on the amounts now available, Senior Minister of State (Trade and Industry) S. Iswaran said the ministry had acted on the request of rice merchants to allow them to import more to meet market demand.
This new move has added 'more flexibility to their mandated stockpile requirements', he said, adding:
'This will also help ensure that Singapore has a slightly bigger buffer of rice than at present, so as to cushion us even more against any possible future supply shocks.''
Responding to a series of questions from MPs on the supply and pricing of rice here, he reiterated that Singapore had enough rice despite the global price squeeze on this staple.
And he highlighted the responsible role that rice merchants have played, noting that they kept up normal supplies and had even asked the Government to give them flexibility to import extra rice as a buffer.
Importers normally have to maintain stocks of at least two times their monthly import quantity. This is a condition of their licence.
Their request for flexibility on this was made when the ministry held a dialogue with rice importers about three weeks ago, said Mr Jimmy Soh, managing director of rice importer Chye Choon Foods.
He told The Straits Times: 'The ministry responded very quickly. Rice is the essential of essentials.''
In Parliament, Mr Iswaran also said: 'Our rice importers have been conducting their business responsibly and maintaining normal supplies to consumers despite the volatility in global markets.'
There are no reports of hoarding, he said.
'We have no reports of any profiteering or any anti-competitive behaviour by our rice importers,'' he said in response to a question from Madam Cynthia Phua (Aljunied GRC).
'They have been very responsible.'
He noted that as a condition of their licence, rice importers are not allowed to engage, directly or indirectly, in price fixing or other unfair trade practices.
The ministry will crack down on them if they are errant, he said.
Importers will also lose market share to other players, he added, pointing out that there were 30-plus importers operating here.
Madam Phua and Ms Lee Bee Wah (Ang Mo Kio GRC) had reflected the concerns of Singaporeans about rice prices and wanted to know what measures were being taken by the Government to ensure supplies.
Mr Iswaran said that besides working with importers, Singapore also made sure its rice supply is 'well-diversified'.
Rice arrives from many sources that are less affected by domestic shortages, including the United States, he said.
Thailand is the major source, but Singapore buys just 2 per cent of its exports, he observed.
He placed the rising prices in the context of multiple factors: global demand, bad weather, falling yields and underinvestment in farm technology.
Foreign players that place large orders in the international market also trigger a spike in prices. The Philippines, for instance, is the world's largest rice importer. It recently placed an order for half a million tonnes of white rice.
Mr Iswaran, while reassuring MPs about the availability of supply, also said that the Government will closely monitor the rice situation.
siewhua@sph.com.sg
|
