RICE (Price increases)

Mr Yeo Toon Chia asked the Minister for Finance (i) the reasons for the recent increase in the price of rice; and (ii) whether the price of rice will be further increased within the next six months.

Mr Goh Chok Tong (for the Minister for Finance): Mr Speaker, Sir, since June 1977, the export prices of Thai rice have been rising as a result of strong regional demand from Indonesia and Malaysia, a long and widespread drought which affected the rice harvest of Thailand, and measures taken by the Thai Board of Trade to control exports. As Singapore obtains more than 90% of her rice supplies from Thailand, we are directly affected by these developments. Thai 100% wholegrain (second grade) and Thai 10% broken, both Government Stockpile grades, are the common grades of rice consumed in Singapore. Their prices rose from US$280 FOB and US$238 FOB per metric ton, respectively, in June 1977 to reach US$390 and US$363 FOB per metric ton in February 1978.

The sharp increases have forced us to raise the prices of Government Stockpile rice released to importers and cooperatives. For the Thai 100% second grade rice, an increase of $5 brought the price to $50 per picul (or 60.5 kg) in February 1978. For Thai 10% broken, the price was raised by $7 to $45 per picul in February 1978. With a reasonable trade mark-up, the retail price should be close to 56 cents per kati (or 605 grammes) for the Thai 100% second grade, and 51 cents per kati for the Thai 10% broken. Consumers can purchase their rice at these prices at the NTUC Welcome and other cooperative supermarkets, NTUC Welcome Fair Price Shops and consumer clubs.

Like other commodities that we import for consumption, we must pay the market price for rice. The presence of a Government Rice Stockpile gives some degree of stability to price of rice in Singapore, but the price of Thai rice depends basically on production and market trends in Thailand. However, prices will be maintained at the present levels as long as possible.

Dr Augustine H.H. Tan (Whampoa): Mr Speaker, Sir, is the Ministry of Finance looking for alternative sources of supply of rice? Moreover, what has happened to the education programme to get people to eat other types of rice, say, from the United States and, at one time, West Pakistani rice?

Mr Goh Chok Tong: Mr Speaker, Sir, the question of alternative sources of supply of rice has been looked into all the time by the Ministry. But there remains a strong preference for Thai rice by Singapore consumers. The education programme was carried out by the Ministry but the fact remains that most Singapore consumers still prefer Thai rice.

Mr Ivan Baptist: Mr Speaker, Sir, could the Senior Minister of State tell us why glutinous rice is difficult to come by, and whether it will be readily available, especially for the forthcoming Chinese festival? What is the Ministry planning to do about this?

Mr Goh Chok Tong: Mr Speaker, Sir, glutinous rice, like the other Thai rice, again depends on supply conditions in Thailand. There is a shortage of glutinous rice in Thailand and the Ministry is doing its utmost to negotiate for the supply into Singapore.

Mr Ivan Baptist: Mr Speaker, Sir, is it not true that the export of glutinous rice is now being banned by the Thai Government?

Mr Goh Chok Tong: Mr Speaker, Sir, that may be so. But again, as I have said earlier on, the Ministry is negotiating with the Thai Government for the supply of glutinous rice to Singapore.

Mr Ivan Baptist: Mr Speaker, Sir, would the Senior Minister of State tell us whether it will be possible for us to get an alternative supply from, say, Taiwan for instance?

Mr Goh Chok Tong: Mr Speaker, Sir, we can only look into that, but I cannot at this stage assure the Member that the supply will be forthcoming from Taiwan or other sources. But we in the Ministry will certainly look at other alternative sources of supply,

Dr Augustine Tan: Mr Speaker, Sir, at one time there was a campaign to get people to eat more wheat. Is the Ministry thinking of reviving such a campaign?

Mr Goh Chok Tong: Mr Speaker, Sir, the Ministry is not at this stage thinking of such a programme. But perhaps the Member for Whampoa might like to do the programme for his own constituency.

Dr Augustine Tan: Mr Speaker, Sir, the Whampoa Constituency is doing very well with the Whampoa Consumers' Club. Thank you.