RICE STOCKPILE (Assurance of supplies)

Dr Ow Chin Hock asked the Acting Minister for Trade and Inudstry if he will give an assurance to the people of Singapore that, under the new rice stockpile scheme, supplies of rice will continue to be made available at competitive prices and of acceptable qualities.

The Acting Minister for Trade and Industry (BG Lee Hsien Loong): Mr Speaker, Sir, the new Rice Stockpile Scheme, to be implemented with effect from 1st April this year, is aimed at stimulating keener competition in the rice trade.

The existing scheme limits the trade to only 15 importers. Under the revised scheme, any bona fide trader can participate in importing rice for domestic consumption and sale. There will be more competition because there will be more suppliers and fewer middlemen. Other things remaining equal, retail prices of the common grades of rice can be expected to fall.

There will continue to be a national rice stockpile under the new Scheme. A trader who wishes to import rice will be required to stockpile, in a Government warehouse, twice the amount of rice he imports monthly. These stocks will form a national stockpile, equivalent to two months' of national consumption. This arrangement will ensure that our population will have sufficient rice supplies, both during peacetime and in a crisis.

The grade or quality of rice imported into Singapore is not controlled by the Government. It depends on the buying habits and preferences of the population. Consumers should continue to exercise care in their purchasing decisions, in order to get value for money.

Mr S. Vasoo (Bo Wen): Would the Ministry intervene if the price of rice goes beyond unrealistic levels?

BG Lee Hsien Loong: Mr Speaker, Sir, that is the purpose of the national rice stockpile. In case of a national shortage, as has happened before, we can release rice from the stockpile, and in that way hold prices down.