By Jessica Lim & Lee Pei Qi, ST
That bowl of rice is going to cost more, following a worldwide jump in grain prices.
Supermarket chain NTUC FairPrice, the island’s biggest with 80 stores, which had been holding out on raising prices of its house brand rice, gave in yesterday as global grain prices shot up 30 per cent overnight.
It raised the prices of three inhouse varieties by 10 per cent to 15 per cent, the first hike since the middle of last year, when the goods and services tax went up, said a spokesman.
A 5kg bag of FairPrice Thai White Fragrant Rice now costs $5.30, up from $4.70, and a 10kg bag of Double FairPrice Thai Hom Mali Rice now goes for $17.90, up from $16.25.
Prices of non-house brand varieties of rice at FairPrice and other supermarkets have gone up, as and when suppliers had adjusted prices.
The latest adjustment follows skyrocketing world grain prices, which have jumped 50 per cent over the past two months and at least doubled since 2004.
On Thursday, the prices of Thai rice, a global benchmark, jumped 30 per cent to an all-time high of US$760 (S$1,050) per tonne after Egypt – a leading exporter – imposed a formal ban on selling rice abroad in a bid to stabilise soaring prices at home.
Prices now fluctuate with each shipment, say importers here.
Previously, exporters used to keep prices unchanged for three to six months at a stretch, said the owner of rice importer Chye Choon Foods, Mr Jimmy Soh, who supplies rice and noodles to supermarkets and about 700 provision shops.
‘For us now, prices change each time we get new supplies. Exporters also ask us to top-up prices stated in old contracts,’ he added.
He and four other companies that import rice and manufacture rice noodles or bee hoon have already told customers to expect prices to go up again next Tuesday by about 20 per cent.
Last year, Singapore imported 326,854 tonnes of rice, with close to 60 per cent of it coming from Thailand.
Vietnam and India make up another 30 per cent, with the rest coming from another 15 or so countries, including just over 2,000 tonnes from Egypt.
But as more countries impose export restrictions, importers here are worried about securing supplies.
Said rice importer Goh Hock Ho, managing director of Saga Foodstuffs Manufacturing: ‘Countries are tightening their supplies. Vietnam is now not renewing their contracts to small companies like us. Now the whole world depends on Thailand.’
The price hikes have already reached hawker stalls.
A bowl of rice at Madam Han Yei Liang’s chicken rice stall went up from 50 cents to 60 cents two days ago.
It is the first time she has raised prices at her two-year-old stall, even though her costs have jumped every week over the last month, she said.
She now pays $12 more per 50kg bag of rice, compared to a month ago, and was warned that the price would go up again by $3 next week.
Said the 50-year-old owner of Rui Kee Hainanese Chicken Rice on North Bridge Road: ‘I try to absorb the price first because I do not want to lose customers. But the price increase over the last month is just too much and too scary.’
