Malaysia and India to Hold Talks on Rice Export Restrictions

19 Sep, 2023

Malaysia and India to Hold Talks on Rice Export Restrictions

Malaysia is set to engage in discussions with the Indian government to devise an optimal solution to address the ongoing rice export restrictions imposed by the South Asian nation. The announcement was made by Malaysia's Agriculture Minister, Mohamad Sabu, who expressed growing concerns about escalating rice prices and supply shortages.

In addition to these talks, the state-run Malaysian rice importer, Bernas, is actively engaging in negotiations with alternative suppliers such as Vietnam, Thailand, and Cambodia. These strategic discussions were presented before the Malaysian parliament as part of the nation's proactive response to the emerging crisis.

Similar to several other Asian countries, Malaysia has encountered a decline in rice supplies and a notable upswing in rice prices in recent weeks. The primary catalyst for this predicament has been the adverse effects of hot weather conditions on rice harvests. Among the countries involved in these restrictions, India, a prominent rice exporter, has taken measures to limit rice shipments. These actions have been initiated with the dual aim of curbing inflation and ensuring domestic food security.

To counter the impending crisis, Malaysia has called upon its domestic rice millers to boost their monthly production levels by 20% over the course of a year. Mohamad Sabu emphasized that these measures are expected to alleviate the current domestic rice shortages within a month, providing much-needed relief to the populace.

Furthermore, Malaysia has a considerable safety net in place, with a rice stockpile of 900,000 metric tonnes. This quantity is deemed sufficient to cater to the nation's rice requirements for a period spanning four to five months, ensuring a degree of stability and security in these challenging times.

This collaborative approach and proactive stance by Malaysia's government and industry stakeholders are aimed at addressing the pressing issue of rice supply and affordability, offering hope for a more stable future in the face of external challenges.