The government will channel subsidies of almost RM400 million for government premises such as military camps and police and school dormitories to use imported rice, as a measure to increase local white rice supply in the market.

Prime Minister Anwar Ibrahim said this could increase local rice supply by about five percent, which was the amount used by the government premises.

“There is a shortage of local rice because the price of imported rice has gone up, and some hotels are already using local rice.

“The decision was made today. (Government premises) will buy only imported rice... how much is the subsidy? Almost RM400 million because it is not free,” he said.

Anwar was speaking at the ‘Segalanya Felda’ Carnival at Dataran Niaga Felda Chemomoi in Bentong, Pahang, today.

Also present were Pahang Menteri Besar Wan Rosdy Wan Ismail and Felda chairperson Ahmad Shabery Cheek.

On Sept 28, Minister of Agriculture and Food Security Mohamad Sabu reportedly said he would propose for government premises to use subsidised imported rice as a measure to increase the supply of local rice in the market.

Meanwhile, Anwar said the government acknowledged the shortage of rice and the price increase of imported rice, which was due to the decision of 18 countries to prevent or limit the export of rice.

“To do it (subsidise imported rice) politics must be stable, the economy must be good, and investments must come in. Only then will the economy improve and when we make a profit we can distribute it to the people,” he said.

He said to overcome the rice shortage, the Federal Agricultural Marketing Board (Fama) was also reminded to actively send rice to affected areas.

“As soon as they hear of an area with a lack of rice, they have to send it. If necessary, the Ministry of Finance will increase the allocation to send this rice. We will pay Fama,” he said.

- Bernama