Rice prices to rise
By MADELEINE AREK and ISAAC NICHOLAS
RICE consumers in Papua New Guinea will have to pay more for it.
Major distributors in the country revealed the increase yesterday while brushing aside reports that there was going to be a shortage of rice.
The embargoes placed by Thailand and Vietnam on rice exports were unlikely to affect major distributor, Trukai.
Trukai Agribusiness manager Geoff Fahey said the embargo was not affecting their supplies, and they had enough stocks for the next seven months.
“We do not want people to panic, and buy and store rice like what they are doing elsewhere. We have enough stock to last for another seven months,” he said.
Mr Fahey said the increase in price was inevitable as rice was an international commodity whose price was determined on the world market.
National Rice Distributors manager Patrick Wong said over the next few months, the price of their Ezy Cook rice brand would increase between 5% and 15%.
He said the increase was indefinite and would remain until the situation stabilises.
“The increase in price of rice is being caused by increases in world market prices, as supplies from Thailand and Vietnam remain tight,” he said.
“Our price has not increased yet. We are waiting for our next shipment. Our prices are being determined on a shipment to shipment basis.
“We do not know how much the increase will go to because the movement of price is very rapid.”
The rice distributors were commenting after Agriculture and Livestock Minister John Hickey raised alarm in Parliament that PNG faces a potential food security crisis caused by insufficient rice production.
Minister Hickey told Parliament that he was briefed by Trukai Rice, the major supplier of rice that it only has seven-and-a-half month supply remaining.
He said this was caused by embargo placed by some of the major rice-producing countries including Vietnam, Thailand, Philippines and Egypt.
Mr Hickey said Australia, which was the traditional supplier of rice to Papua New Guinea, also faced its own production problems.
He said last year, Australia produced 1,800 tonnes of rice compared to two million tonnes it has been producing.
“Rice production will not come back on line and it will take at least two years.”
Minister Hickey was responding to questions from Bulolo MP Sam Basil about the current state of affairs facing commodity boards, and the latest about rice production in the country.
The minister also said he would make a ministerial brief to Parliament today.
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