Malaysians urged not to panic-buy local rice after import prices rise substantially

Malaysia reassures citizens of ample rice supply, urges no hoarding; govt to increase distribution to rural areas, subsidize imported rice for poorer states, step up surveillance of wholesalers/shops. PM warns of stern action against hoarding.

Malaysia's government has reassured the country that enough rice is available and urged people not to hoard locally produced rice after recent panic-buying led to empty shelves in supermarkets and grocery stores nationwide.

Agriculture and Food Security Minister Mohamad Sabu said Monday the government will increase distribution to rural areas to address a supply issue sparked by a hike in the price of imported rice. Malaysia and many countries are grappling with rising rice prices and low supplies after India's curb on rice sales cut global supplies by a fifth.

Mr. Mohamad said locally produced rice is capped at 2.60 ringgit ($0.55) per kilogram (2.2 pounds), the cheapest in the region. So when sole importer Padiberas Nasional Berhad raised the price of imported white rice by 36% on Sept. 1, it prompted many Malaysians to switch from imported rice to cheaper local rice.

He said the higher price of imported rice cannot be helped after India and 18 other countries restricted rice exports to cater to domestic needs. Malaysia imports about a third of its rice supply.

“Actually, we don't have a shortage of rice in the country. It's just that the price of imported rice has risen sharply," he said, adding that the government is taking steps to address this issue.

“I want to remind the people again to keep calm and just buy what you need. Don't panic-buy.”

Prime Minister Anwar Ibrahim said later Monday that it will take time to resolve the issue. He was quoted by the national Bernama news agency as saying the government will provide 400 million ringgit ($85 million) in subsidies to government facilities such as army and police camps and schools to use imported rice so there will be more local rice for the market.