Mydin hypermarket managing director Ameer Ali Mydin said this was on top of last month’s price hike of between RM1 and RM2 per bag for imported white rice.
“We have been told by suppliers that there is going to be a further increase of between RM1 to RM2 per 10kg bag. This obviously will increase the retail selling price by another RM1 to RM2 per 10kg bag,” he told FMT.
Ameer attributed the price increase to a weakening of the ringgit as well as other hikes in costs, including for electricity and labour.
However, not all suppliers are hiking their prices, he added.
Ameer said suppliers have already started selling local white rice, the 5% “Super Spesial Tempatan”, at RM12.80, up from RM12.50 per 5kg bag, slashing the profits of retailers.
“Primarily the cost to us has also gone up from RM12.50 per 5kg bag to RM12.80 per 5kg bag, but we still need to sell at RM13,” he said, referring to price controls put in place by Putrajaya.
He attributed the surge in the price of local white rice to a shortage in supply caused by the recent heatwave which impacted last season’s harvest.
However, supplies are expected to stabilise by September, he said.
Malaysian Indian Restaurant Owners Association (Primas) president J Suresh warned that another hike in the price of imported rice, along with the rising cost of raw ingredients, could force restaurateurs to increase their prices.
He said this could also spell the end of Menu Rahmah, a government initiative offering meals for RM5 and below at selected eateries.
Suresh said the low-priced menu required restaurateurs to absorb certain costs, which they can only manage to do for one more month.
He also said he has yet to see the special discounts on raw materials promised to operators offering Menu Rahmah.
“We are (also) offering the Menu Rahmah, until today we are continuing to do so. The domestic trade and cost of living ministry told us they’d provide some subsidies, but (they) haven’t done anything (until now),” he said.
In April, Prime Minister Anwar Ibrahim announced special discounts on items such as chicken, onions and other basic ingredients at selected supermarkets.
The following month, FMT quoted a livestock breeder as saying that the heatwave could impact productivity and lead to a price hike, while vegetable farmers said an increase in the population of pests brought about by the hotter climate had caused a decline in vegetable produce and sent prices soaring by up to 40%.