India to Sell Rice to Malaysia in New Agreement
Published on: October 20, 2023.
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India Agrees to Export Non-Basmati Rice to Malaysia to Alleviate Rice Shortage
The recent rice shortage in Malaysia has garnered some relief as India has agreed to export 170,000 tonnes of non-basmati white rice to the country. This announcement was made by Foreign Minister Datuk Seri Dr Zambry Abd Kadir, who received the news through a call from his Indian counterpart, External Affairs Minister Dr S. Jaishankar.
Malaysia and India have always maintained strong bilateral ties, and this special allocation of rice is a result of their close relationship. Following a request from the Malaysian government, India approved the export of non-basmati white rice as a friendly gesture.
This decision reflects India’s commitment to supporting the efforts of friendly countries in ensuring food security. The export of non-basmati white rice will provide some respite to Malaysia’s current shortage, allowing the country to find long-term solutions for a stable supply of white rice.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu expressed his gratitude for India’s assistance and stated that the special quota of imported rice would have minimal impact on the price of local white rice. He assured the public that the price increase, if any, would be insignificant due to the small percentage of non-basmati rice being imported.
India is a major player in the global rice market, responsible for 40% of the world’s rice exports. However, on July 20, the Indian government decided to halt the export of non-basmati white rice to address domestic concerns over rice prices and availability. This led to a shortage in countries like Malaysia, the Philippines, and Vietnam, which heavily rely on rice imports from India.
In addition to India, Malaysia imports rice from Pakistan, Thailand, and Vietnam. On average, Malaysia imports approximately 750,000 tonnes of rice annually. The concern over the shortage stemmed from the fear that the price of rice would skyrocket in the absence of sufficient supply.
Currently, the local white rice price is RM2.60 per kg, as regulated by the Rice (Price and Grade) Order 2008 and the Control of Padi and Rice Act 1994. To address the shortage, the Federal Government requested all padi millers and rice wholesalers to increase the supply of local white rice by 20% as part of the Local White Rice Special Programme.
With India’s export of non-basmati white rice, Malaysians can now breathe a little easier as they work towards long-term solutions for a stable supply of this staple food.
Source:The Star
