Imported rice prices set to rise next month

SHAH ALAM - Starting next month, consumers can expect a rise in the price of imported rice in the market, with a projected increase of RM1 to RM2 per 10-kilogram (kg) bag.

This development is primarily attributed to the depreciation of the ringgit, along with escalating labor and electricity costs.

Mydin Mohamed Holdings Bhd managing director Datuk Ameer Ali Mydin disclosed that the price hike would affect various types of rice, including imported white rice, basmati rice, and fragrant rice.

However, local rice prices will remain unaffected due to government-imposed price controls.

"We have notified our suppliers about the upcoming price increase, which means there will be a further rise in prices next month.

"This phenomenon is not unique to Malaysia; most countries are experiencing similar increases. In our case, the weakened ringgit, rising electricity expenses, and labor costs are the contributing factors," Ameer said in an interview with Sinar.

He further explained that the cost escalation necessitated a corresponding increase in prices.

The range of imported rice, including basmati rice, fragrant rice, and imported white rice, currently sells between RM13 and RM15.

Ameer also noted that the recent heat wave adversely affected the previous season's rice harvest, resulting in a price surge for local white rice.

However, it is expected that the supply will stabilise by September.

On the impact on retailers, Ameer mentioned that their profits had declined due to suppliers raising the price of local white rice '5% Super Spesial Tempatan' from RM12.50 to RM12.80.

"Despite the increased cost, we are still required to sell it at RM13 due to price controls on local rice.

"As retailers, we are burdened with these additional costs, leaving us no choice but to adjust product prices accordingly to offset the increased expenses," he clarified.