Lim Swee Say Speaks Again ...

April 11, 2008
Rice a small part of bills at FairPrice: Swee Say
Labour chief: Price hikes not alarming if 'total package' considered as costs of other food items fairly stable
By Goh Chin Lian
PENNY WISE: Shoppers looking for cheaper rice can opt for house brands, FairPrice's director said. -- ST FILE PHOTO THE cost of rice is a small fraction of shoppers' expenditure at NTUC FairPrice supermarkets, according to labour chief Lim Swee Say. Out of every $10 spent last year, only 22 cents went to rice, he said yesterday. So, despite exporters doubling the global price of rice, it has not burnt as big a hole in the pockets of consumers, he told 80 union leaders. They were with him on a tour of NTUC FairPrice's fresh food distribution centre. 'Yes, the cost of living has gone up, but it does not mean your $10 has become $5 because you did not spend all your $10 to buy rice. 'You spent only 22 cents to buy rice,' he said. VIDEO Struggling with inflation? Here's help to stretch that $$ (3:42) Mr Lim derived the figures from the $1.6 billion spent at the supermarket chain, of which $36 million was spent on rice. 'That leaves you with $9.78 to buy many other items,' he added. The prices of these items, such as vegetables, fruit and frozen food, have stayed fairly stable, increasing by less than 5 per cent, he noted. 'If you look at the total package, then the increase is not as alarming,' he said. Mr Lim was seeking to reassure workers. He said they had been telling union leaders that they were worried about rice being costly and the shrinking value of their dollar, with some saying that their $10 was now worth $5. Mr Lim urged union leaders to tell workers not to panic over the rising price of just one item. 'You don't go home, eat rice in the morning and nothing else; lunchtime, eat rice alone and nothing else; dinner, eat rice and nothing else; and then in-between meals, you're hungry, you have rice as a snack and nothing else. 'We should look at it in perspective,' he added. During the tour, NTUC FairPrice director Tng Ah Yiam assured union leaders that the chain had enough rice, having stockpiled more than two months' supply. Though the global price of rice rose this week to US$21.50 (S$30) per 45kg - double last year's price - FairPrice had raised prices by between 9 and 14 per cent, he said. But the supermarket chain is feeling the pressure on costs, because exporters insist on selling rice at prevailing prices and refuse to let buyers lock in the price for three months. Still, house brands will be 10 per cent cheaper than other brands, Mr Tng added. After the tour, Mr Lim announced a $4 million gift from the labour movement to its less well-off members. They will get discount vouchers to buy food and household items at FairPrice supermarkets or to pay for fees and other expenses at five other cooperatives that offer such services as health care and childcare. chinlian@sph.com.sg Must keep this as a record for posterity. Will comment at a later date, when I am free. The Garuda.