‘Rice prices will continue to increase’

The leading importer of rice in the CNMI said the price of the staple would continue to increase until the end of the year because of international market forces.

In an interview with Micronesian Brokers Inc. general manager Francisco Barja, he said the global rice shortage is forcing rice prices to soar to record highs.

“The international rice market is facing a difficult situation, with demand outstripping supply and this has led to substantial price increases.”

He said rice-exporting countries are hoarding their crops amidst droughts in China and Australia and production declines in the United States and Japan.

“Thailand, China, India, Egypt, Vietnam and Cambodia have either imposed minimum export prices, export taxes, or export quotas and, as is the case in India, bans. As a result, demand has surged in countries that rely largely on rice imports, such as Bangladesh, Indonesia, and Iran,” said Barja.

The skyrocketing price of rice and its shortage of supply has put Barja and MBI in a bit of pickle—and equally the entire Commonwealth.

The company is the leading importer of rice in the CNMI and sells class A Thai jasmine, otherwise known as Hom Mali rice. MBI’s brands—Royal Thai and Royal Harvest—are the market leaders on Saipan.

“Unfortunately, what is happening around the globe is making the availability of Thai jasmine (Hom Mali) rice more scarce. Rice prices have doubled the past few months. But I am more concerned about the supply than the price. If there is no supply…then Saipan will face a big problem since more than 90 percent of the population consumes rice. As of now, consumer and retailers alike are complaining about the increase in prices. But we could not do anything. We cannot dictate Thailand, Vietnam, or other rice-producing countries to give us better prices,” said Barja.

Asked if the trend of higher rice prices will continue for the foreseeable future, Barja said, “I believe that increasing prices and declining supply will continue until the end of the year.”

He added: “Every week, we negotiate with our suppliers in Thailand for better prices and get the supply open for Saipan. We are also looking at other types of grains that will be acceptable to the general population. MBI is not the only wholesaler of rice though; there are others who sell rice in the market. I believe they are also doing their best to maintain their supply for this market.”