Malaysia’s Rice Shortage Explained: Diseases, Hoarding, India’s Rice Export Ban, and more

Last year, our country faced an egg shortage and now, Malaysia is facing a rice shortage. If you’ve taken a trip to the supermarket lately, you’ve probably noticed that the price of rice has risen exponentially or that there is no local rice to purchase.

According to The Star, earlier this month, Padiberas Nasional Bhd (Bernas) adjusted the price of imported white rice nationwide from RM2,350 a tonne to RM3,200 a tonne to correspond with current global market prices. This has caused the price of imported white rice to go up from RM33 to RM39, in comparison to local white rice being sold at a controlled price of about RM2.60 per kg or RM26 per 10kg bag.

Rojak Daily spoke to a mini market owner in Penang named James who said, “We used to have both local and imported rice. But the profit is only RM0.20 for local rice for us due to transportation costs and the markup by wholesalers. Starting last week, imported rice prices also cost RM1 for 1kg. Our customers are all complaining about the price increase.”

The Star also reported that Datuk Seri Mohamad Sabu, Minister of Agriculture and Food Security of Malaysia has commented that the ministry expects the shortage of local white rice to stabilise within a month due to intervention measures put in place by the government along with constant monitoring.

However, NST reported that Gerakan deputy president Oh Tong Keong has called on Prime Minister Dato’ Seri Anwar Ibrahim to address the current rice issue seriously by guaranteeing that prices will remain stable amid a shortage. He further commented that Mohamad Sabu had failed to find a solution for the problem and had only made “exaggerated’ statements that the local rice supply was sufficient for five months according to market demand.

If you’re wondering what exactly is causing the rice shortage and the spike in prices, here are a few factors:

Rice export ban in India

According to AP News, India declared in July that it would ban some rice shipments. It is the world’s largest exporter of rice by far and this ban creates a deficiency of around 10.4 tons of rice that is needed around the world. The prohibition of non-Basmati white rice was placed by the Indian government to ensure lower prices and availability in the upcoming festival season.

Along with the fact that Russia pulled out of a wartime agreement allowing Ukraine to ship grain to the world, this has caused global prices of rice to spike. The FAO Food Price Index, which tracks monthly changes in the international prices of commonly traded food commodities, increased 1.3% in July from June due to higher costs for rice and vegetable oil.

El Nino Arriving Earlier than Usual

Global temperatures typically increase during an El Nino episode, and it can also cause drought as well as floods. According to AP News, “An El Nino is a natural, temporary and occasional warming of part of the Pacific that shifts global weather patterns, and climate change is making them stronger.”

This year it arrived one or two months earlier than usual, causing warmer and drier weather which subsequently hampered rice production across Asia. In Asia where 90% of the world’s rice is grown and consumed, a strong El Nino typically means less rainfall for the crop.

Panic Buying

Ironically, panic buying amongst consumers has caused prices to increase as well. In Johor for instance, State Agriculture, Agro-based Industry and Rural Development Committee chairman Datuk Zahari Sarip said that families that used to buy only one packet of rice a month bought two or three instead and this included those in the F&B business.

Dirty Water Causing the Plants to Die Prematurely

According to The Straits Times, paddy farmers have complained that they are forced to use dirty water to irrigate their paddy fields. A farmer in Sekinchan, Selangor said that they had to pump contaminated water from nearby waterways into their fields. This causes many plants to die before reaching maturity. According to him, the problem started almost a decade ago and has only escalated. The farmer said that the only solution was for the relevant authorities to tap underground water and build a covered storage area for farmers to water their fields.

Seeds Succumbing to Diseases Due to Poor Quality

Another farmer stated that the seeds given to farmers are of poor quality which causes them to succumb to diseases such as bacterial leaf streak disease (BLS), bacterial leaf blight (BLB), and bacterial panicle blight (BPB). Hybrid seeds used by farmers in other rice-producing nations in the regions can usually fight infections better. In order to counter bacterial infection to increase their yield, paddy farmers are forced to fork out additional money for organic fertiliser and products in order to cultivate good bacteria.

Twitter user Kuala Lumpur reporter also shared an undisclosed clip which revealed a 10kg bag of imported rice with two different price tags: RM48 and RM39.

An undisclosed clip has gone viralled in the social media revealing a 10 kg bag of imported rice having two different price tags, a RM48 tag pasted on the RM39 tag. ? net/public #pricehike #riceshortage pic.twitter.com/DVKovRjzru

— Kuala Lumpur Reporter ?? (@KL_Reporter) September 20, 2023

Are you facing a shortage of local rice in your area? DM us or email us at [email protected].

Image credit: @izwanhasan