KUALA LUMPUR: Bernas, the country's sole rice importer, has signed an agreement with Thai exporters for the purchase of 200,000 tonnes of rice to increase the national buffer for the grain to three months.

The Thai Rice Exporters Association will supply 100,000 tonnes each of 15 per cent and 5 per cent broken rice, with half of the former to be delivered in two weeks, Agriculture and Agro-based Industry Minister Datuk Mustapa Mohamed said yesterday.

The remaining 150,000 tonnes will be sent in stages up to the end of June. Both rice grades are to be sold in the domestic market at controlled prices.

On Monday, Prime Minister Datuk Seri Abdullah Ahmad Badawi announced that 15 per cent broken rice would stay at its controlled price band of RM1.65-RM1.80 per kg and he set ceiling prices for 10 and 5 per cent broken rice, in effect subsidising consumers for the first time.

The purchase would increase the strategic reserve to six weeks consumption. With rice and padi stocks in inventory totalling 464,000 tonnes, the national stockpile would exceed three months, Mustapa said.



"Malaysia intends to increase stocks to 500,000 tonnes. When this total is reached, stocks in the country will be at a comfortable level," he said.

Mustapa did not disclose the price negotiated for the Thai consignment but hinted that Bernas and the government had put off a bigger order to wait for a better deal.

Meeting Mustapa in Bangkok last week, Thai Prime Minister Samak Sundaravej agreed to the supply of 500,000 tonnes.

However, Bernama reported on Monday that Bernas and ministry officials had baulked at the high asking price for the total tonnage. Thai rice prices remained firm this week, with the benchmark 100 per cent white rice unchanged at US$920 (RM2,972) a tonne due to strong regional demand, Bernama reported yesterday.

"The supply of rice in the country is sufficient," Mustapa said.

He said the government had managed to obtain a high degree of food security amid rising prices and the tight global market.

"The government has devised measures to raise domestic padi output above the present 72 per cent of the nation's needs," he said.

Malaysia consumes about 2.2 million tonnes of rice a year.