Rising food prices are a global phenomenon driven by various factors, such as increased demand from China and India, reduction in supply due to crop failures, diversion of resources to bio-

fuel production and high oil prices leading to higher food processing costs.

In particular, prices of staple food such as rice and cooking oil have been hardest hit.

FairPrice imports all its food products directly or through suppliers and they are subject to fluctuations in global food prices. Despite the recent price adjustments, our prices of rice and cooking oil are among the cheapest in the market.

In the results of the price survey released by Case last Friday, FairPrice had the highest number of cheapest items and is the only supermarket with uniform pricing across its outlets.

The survey also revealed that among the supermarkets surveyed on 12 well-known brands, FairPrice was found to have the most products at the lowest price.

While global rice prices have increased by more than 100 per cent since March last year, FairPrice has held its rice prices. Our house-brand rice prices have increased by 15 to 25 per cent since March last year.

This is a moderate increase compared to national brands such as 10kg Royal Umbrella rice, which jumped 44 per cent in a month, as reported in the Case survey.

Due to the low price of FairPrice house-brand rice, sales of our rice more than doubled in March and this has depleted our rice stockpile.

To make sure we provide a reliable supply of rice to consumers, we have replenished our stock with rice bought at prevailing market prices. We will continue to make sure that our housebrand rice is at least 10 per cent cheaper than competitive brands.

Rising retail price of cooking oil also reflects the global trend in increased edible-oil prices.

Over the past three years, prices of liquid palm oil have more than doubled. Currently, FairPrice vegetable oil is about 20 per cent cheaper than competitive brands.

Despite the recent price adjustments, our prices of rice and cooking oil are among the cheapest in the market. FairPrice will continue to moderate retail price increases and keep our housebrands at least 10 per cent cheaper than comparable brands.

Just as FairPrice tries to be the last retailer to up its prices, consumers can be assured it will endeavour to be the first retailer to drop prices where appropriate.

Seah Kian Peng
Managing Director (Singapore)
FairPrice Cooperative