MTI Responds to India’s Move to Impose New Tax on Rice Exports

Another day another tax.

First, we had an increase in GST, then we had an increase in prices for vegetables and chilies, and now, we might be getting an increase in price for rice.

Time to switch to western cuisine.

The news comes as India has recently placed a 20 per cent levy on rice products like white and brown rice, and has placed a ban on broken rice exports.

India supplies roughly 40 per cent of rice around the globe and the move has placed pressure on countries, especially those struggling with hunger.

According to the Observatory of Economic Complexity, Singapore imported $59.8 million worth of rice from India in 2020.

Thankfully, the Ministry of Trade and Industry (MTI) has thought ahead, and said that rice importers here have not faced any significant disruption yet.

The Rice Stockpile Scheme, which has been around since 1968, has helped to reduce to impact of the supply disruption.

Under the scheme, suppliers are required to hold at least two times their average monthly imports in their backstock.

For the grocery aunties, you don’t have to worry. Yet.

Supermarket chains like Sheng Siong and FairPrice have not announced an increase in prices yet. Sheng Siong plans to keep their prices the same for the short term while FairPrice has said that their prices for rice have remained relatively the same.

But that doesn’t mean other businesses will follow suit.

Mustafa Centre, which imports a majority of its rice products from India, will be placing a 20 per cent increase after their latest shipment arrives. Its supply will not be affected though.

Other places like catering solutions have yet to increase their prices but plan on gradually doing so.

So stay on your toes because it doesn’t seem like there will be a decrease in costs for anything anytime soon.

Shortage in Vegetables and Chilli in Singapore

If you didn’t know, Malaysia has been getting some heavy rain these days which has led to a 10 per cent to 30 per cent increase in the price of vegetable imports from them.

And that’s not all: Malaysian chilli imports are also being affected.

One vendor who used to sell chillis at $7 to $8 per kilogram is now them at around $10 to $12 per kilogram

To find out more, watch this video to the end:

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