KUALA LUMPUR: The government has rejected the suggestion by Mydin Hypermarket managing director Datuk Ameer Ali Mydin for the price of local white rice to be raised from RM26 to RM34 per 10kg.
The Agriculture and Food Security Ministry, in a statement today, said the retail price for the rice will stay and be controlled at RM2.60 a kilogramme.
"This is as stipulated under the Price Act (Grade and Price Control) Order (Amendment No.4)2008 and the Control of Paddy and Rice Act 1994 (Act 522)," it said.
The ministry also said its decision to sell imported white rice at wholesale at RM160 for 50 kg to associations, restaurants, food entrepreneurs and hawkers was to assist them to control their operating costs and to ensure the price of rice sold is not increased.
The ministry added that such effort can also ensure the stability of local white rice supply by reducing large purchases by restaurants, food and petty traders for business purposes, compared to purchase for domestic needs.
"In this regard, the ministry took that step to balance the rice needs for business purposes with household use during the current period of high demand for local white rice.
"This agreement was reached through engagement sessions between the ministry and restaurant associations, food entrepreneurs and petty hawkers on Sept 15," it said.
Yesterday, Ameer Ali said the government should raise the ceiling price for local white rice to RM34 per 10kg to tackle the supply shortage.
He claimed that local millers were discouraged from producing rice due to its current low ceiling price of RM26 for 10kg.
An increase, he said, would improve cost structures for producers and help curb shortages, describing it as a better solution than trying to maintain the price at RM26 since supplies still run dry.
