Rice Price Rise ....

The rising of the price of rice recently has a great effect to the public. Previously, the rice that can be purchase at RM18.00 per 10kilos, now stand at RM28.00 and even higher. It has generated a lot of inconvenience and domino effect to the rice related products.Furthermore, the cheaper rice which (broken rice 15%) is under price control item was not easily available in the market.

This was the effect of the increase of the price of rice in the world market.A lot of reasons has been told such as global warming, flooding in the rice producing country, increase in rice consumption due to high population, the shortage of land because of development, the bio energy farming and several other reasons. Given whatever reasons, we cannot run away from world food crisis. The authority, should find a solution to the problem.

The most interesting part is the paddy farmers also feels the same pinch. They have to purchase it at the same price as we are, eventhough they are the one who has planted it. Only a handful of them who sell their paddy to Bernas enjoyed the special price of less than RM14.00 per 10kilos. (for broken rice 15%)However, most of them sell their paddy to the local rice miller which in turn never sell back the rice to them at a special price.

Why they have to sell to local rice miller instead of Bernas which allow them to repurchase back the rice at a special price? The question that I posed to some friends which happened to be the paddy farmers also. The answer is debt. Most of the farmers are poor and have taken an advance money from paddy broker which in the other hand, get the money from the local rice miller. Owing to this, the farmer has to sell their paddy to the respective miller only.

My thought is that if the paddy farmer is free from debt, they have the choice of selling their paddy to anybody the like which offer the highest price. This will enable them to get the highest return especially in the next harvesting as the price may increase to RM1000.00 per tonne as reported. On the price of the rice which is at the higher side, I believe this is the time that the farmers enjoy a better price as the price of paddy has been so low for the past 10 years.

However, the broken 15% rice which is under price controlled item should be available easily for the needy.