Most Read
Most Commented
Read more like this

I refer to the letter Don't let rice boil over into FTA .

I would like to ask: What is so wrong about importing US-grown rice if it results in Malaysian consumers paying a lower price for rice in general?

I am currently in the US on a study programme. I buy rice from Asian-American grocery stores. I pay an average of US$11 for a 25-lb bag of Super Grade AAA Fragrant Jasmine rice from Thailand. Non-fragant rice, mostly US-grown, is cheaper, averaging US$8 for a 25-lb bag. Here, it is a fact that most Asians prefer Thai rice because of its higher quality (shape, texture, and

fragrance).

Based on the current US minimum wage of US$5.15 an hour, a US resident can buy 25 pounds of super quality rice (US$11) for 2.1 hours of labour. In Malaysia, I found that the cost of rice is very expensive relative to the wages of the average Malaysian.

A 10 Kg (22 lb) bag of Super Grade AAA Fragrant Jasmine rice costs RM30 and above. For a low wage earner working 40 hours a week and paid RM250 a week, this is 4.8 hours of labour (assuming RM30 rice).

I believe one reason for rice being expensive in Malaysia is largely because of the import quotas and price controls imposed by Bernas. Another reason perhaps is that Malaysian rice farmers are not as cost competitive and productive as other rice growers in the region, notably Thailand. We do not grow enough for the local population let alone for export globally. So far, I have not seen any Malaysian-grown rice sold in US stores.

I argue that rice should be included in the US-Malaysia Free Trade Agreement (FTA) talks and CAP (Consumers Association of Penang) should lobby the government to introduce legislation to lower or abolish tariffs and ban rice import quotas.

The argument is often made that the US is subsidising its rice growers and exporters to gain an unfair price advantage. One can say that Bernas, too, is subsidising our local rice farmers by forcing the 'rakyat' to overpay for rice in order to protect the local rice industry. These import quotas and tariffs only serve to restrict the supply of rice in the market and artificially inflate its price in Malaysia.

CAP should use its influence and resources to force Bernas to change its way of doing business. CAP should fight for the interest of the rice consumer, not the rice grower, the rice industry, or Bernas. If our rice farmers cannot grow rice cheaply, more efficiently and more abundantly, why protect them?

Finally, if the US is keen to subsidise the US farmer so that they can dump their rice in Malaysia, I say let them. Let the hardworking US rice farmers continue to grow rice and sell it cheap to Malaysia.

Once US rice is available in Malaysia, let our taste-discerning consumers judge its quality. If it is not up to par, it will not be popular no matter how cheap it gets. If it is of good quality, let us be thankful that all of us eat cheaper rice at the expense of the American rice grower.

For food security reasons, we can never be overly dependent on foreign countries for our rice source. We still need the Malaysian rice grower. But let them concentrate on planting super quality rice hybrids and selling them in the free market to the highest bidder. Better still, export all of it overseas to earn foreign exchange and use that to pay for cheaper imported rice.

In this way, the local rice farmer's livelihood is protected and we can all enjoy cheaper good quality rice once the FTA is signed, sealed, and delivered.

ADS