Saturday, November 15, 2008

Why prices of rice still high?

In fact, the local rice prices should not be increased at all during the food crisis last year.


This is my point, be it valid or not I'll leave it to the experts:

If local rice are controlled items, what doe it means? It means the wholesalers will buy from farmers a fixed price, and to sell to the consumer at a fixed retail price. Thus, the Government is subsidising both ends, i.e. to the farmer and to the consumer.

In addition to this, local rice is not exported as we do not have enough production for our domestic market, hence there's no export of local rice.

The question is: If local rice is not exporting, it should not be subjected to fluctuation of world rice prices, i.e. what happen in rice prices outside has got nothing to do with prices of local rice.

If it does not subject to world rice prices, why the Government increase the prices of local rice then to almost 100%?

Since then, world rice prices goes stable to almost the level of 2007, but our local rice prices?

Perhaps the Government should look at itself from the mirror before accusing sundry traders not reducing the prices of essential goods.

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