Channel NewsAsia - Friday, June
20
SINGAPORE: After three months of soaring rice prices, consumers
can afford to breathe a little easier for now.
From today, the prices of eight types of NTUC FairPrice’s
housebrand rice will be reduced by between 5 and 12 per cent,
Singapore’s largest supermarket chain announced on Thursday.
This marks the first time FairPrice is cutting the prices of its
housebrands since rice prices shot up in March.
A 5kg bag of its Thai Fragrant White Rice will cost S$7.45, down
from S$8.50, while its Thai White Rice — the cheapest type — will
be sold at S$6.95 for a 5kg bag, instead of S$7.50.
Although global rice prices peaked about three weeks ago, the
price of rice had been expected to fall in recent months, as major
producers in South—east Asia braced themselves for harvesting
bumper crops.
But CIMB—GK economist Song Seng Wun was circumspect on whether
the price of rice would continue to drop across the board, pointing
out that the initial spike was triggered by unpredictable factors
such as inclement weather and panic—buying.
“At least for now, there is more stability for rice, a staple
food here,” he said. “But having said that, the price of rice is
still significantly higher than that of a year ago.”
On Wednesday, a survey by the Consumers Association of Singapore
(Case) provided the first indications of a respite for consumers
when it revealed that the prices for a handful of imported rice
brands, such as Golden Peony and Royal Umbrella, had dipped.
But the survey also showed that prices of housebrands had risen
in the last month.
FairPrice group chief executive Tan Kian Chew added that the
company was “still clearing the existing stock of rice bought at a
higher price”.
Mr Tan said: “Due to our prudent buying strategy, we have
managed to secure new shipments of rice at a lower price. Although
the new shipments will arrive only in end July ... FairPrice is
committed to pass on the anticipated savings to our customers.”
TODAY was unable to reach the other supermarket chains at press
time, but Case executive director Seah Seng Choon said that
FairPrice’s competitors might follow suit “if they were concerned
with competition”.
Still, Mr Seah added: “In the short run, there would be price
rigidity and prices might not go down as much as consumers want to
see. But the prices shouldn’t be going up.” — TODAY/fa