No major disruption to Singapore's rice imports from India's levy move

There has been no significant disruption to Singapore's rice imports from India, while rice imports from countries such as Vietnam and Thailand are still healthy.

Also, the nation's Rice Stockpile Scheme has helped it mitigate the impact of any supply disruptions or price fluctuations, said the Ministry of Trade and Industry (MTI).

India recently imposed a 20 per cent levy on exports of key varieties such as unmilled and husk brown rice, and banned the export of broken rice, whose consumption here is low, MTI said.

The ministry added that the Government will continue to monitor the situation and ensure that Singapore has a sufficient supply of rice.

Singapore imported US$59.8 million (S$84 million) of rice from India in 2020, compared with US$57.3 million of rice from Vietnam and US$123 million from Thailand in the same year, according to the Observatory of Economic Complexity.

Importers under the Rice Stockpile Scheme need to have an inventory buffer equivalent to two times their average monthly imports, according to a written parliamentary reply by Trade and Industry Minister Gan Kim Yong in July.

This helps to stabilise the supply and prices of rice during periods of uncertainty and supply shortages.

Supermarket chain Sheng Siong has said that it will not increase the prices of house brand rice in the short term, while FairPrice said its prices have remained stable.

But other businesses are set to increase their prices.

Mustafa Centre, which sources most of its rice products from India, will raise prices of affected products by 20 per cent after its next shipment arrives.

Its purchasing manager Mohd Saleem did not give a date for this shipment.

"There is no issue with the supply of rice, only the prices will be affected," he said.

Mr V. Rama Murthy of Chennai Trading and Supermarket said his regular customers, mostly caterers for migrant workers, are now hesitant to buy from him.

He has hiked the prices of all types of rice, except basmati, by $5 for a 25kg bag from Wednesday.

"Customers are confused and upset at the uncertain situation, and are hesitant to buy in bulk now due to the increase in prices," he said.

Conversely, Catering Solutions - which uses five tonnes of rice daily in its meals for foreign workers - aims to increase its prices gradually, said director S. Mahenthiran.

"Prices tend to go up during certain seasons, and fall during other seasons. But this time round, it is a bit different. Prices have remained high," he said.

"Furthermore, the Indian government introduced an export tax on rice, which took effect on Sept 9. This has further inflated the price of rice," he added.