Quick buck on rice: FairPrice acts
AS RICE prices head north, some traders and small businesses are apparently turning to Singapore's largest supermarket retailer to make a fast buck. They seem to be buying the cheaper rice sold at NTUC FairPrice to resell them at a higher price.
To discourage such bulk buying, which would reduce stocks and potentially drive up prices, FairPrice, for the past month, has been advising customers to buy no more than five 10kg bags of rice each. If customers were to attempt to buy in excessive amounts – say, 20 bags of rice – FairPrice staff would intervene and tell customers they could not do so under the policy. "We have seen a handful of customers who have bought excessive bags of rice," said FairPrice managing director (Singapore) Seah Kian Peng in a statement on Friday. "We suspect that these are traders or small businesses who take advantage of our low pricing." According to FairPrice, about "a handful" of customers have been stopped by staff from buying large amounts of rice since the measure took effect. Mr Seah gave the assurance that FairPrice has "adequate supplies of rice" and that its stockpile is at a "healthy balance". While the policy has been in place for about a month, some frontline staff at one FairPrice supermarket were unaware of the measure. "We don't know about this ... if customers want to buy 20 bags also can," one cashier told this newspaper. According to rice importer Chye Choon Foods' managing director Jimmy Soh, the steep prices in rice had initially resulted in some hawkers going to supermarkets for rice supplies rather than wholesalers. "Retail prices don't fluctuate as quickly as wholesale prices, so wholesale rice became more expensive," he said. But for traders and small business owners to buy from a retailer and resell at a higher price, Mr Soh felt that the profit margins were not significant enough for it to become a widespread practice. When approached by Weekend Today, hawkers and food caterers said they did not buy rice from FairPrice, because wholesalers would deliver the rice to them. "Most caterers will at least order 50kg each time, so it's more convenient. It's also sometimes cheaper than NTUC," said Ms Marilyn Fong, 36, purchase manager for KCK Food Catering. Said Mr Chua Chin Teck, 50, a worker at a pig organ soup stall: "It is more convenient to get from suppliers because we have no time to go to NTUC." Other supermarket chains in Singapore said they were not planning similar measures. Mr Wong Heng San, spokes-man for Sheng Siong Supermarket, said: "We don't see a need for such a limitation, because we are not selling our rice below cost. If retailers sell their rice below cost, then maybe they will be a bit more worried about how much people buy." Rice sales are stable and stocks remain adequate, he added. A spokesperson for Giant Hypermart and the Cold Storage Group said that there are "no quotas (on buying rice) except during rice promotions. There's no necessity for it currently as rice sales are stable". Consumers we spoke to did not feel that the move would affect them as they did not buy rice in large amounts. Bank officer Fazlinda Sallim, 35, said while the NTUC policy could make it inconvenient for people to buy in bulk, "they can still buy them on different days, or just go to other outlets to buy the rice". A quota of some kind on customers could be a good measure in the short term, as it would help to prevent artificial inflation of prices because of hoarding, said S Rajaratnam School of International Studies associate research fellow Ng Sue Chia. Whether FairPrice's approach of encouragement rather than enforcement would be effective is "hard to gauge", said Ms Ng, but it was sure to create the awareness needed to prevent opportunistic behaviour. Also, the frontline staff would have to explain clearly to consumers the rationale behind such recommendations. "If not, the consumers might interpret the move as an indication of further reduction in rice supplies," said Ms Ng.I can only say, just buy enough for your own needs... keeping rice for too long, it will start growing weevils
anyway, what NTUC been saying recently are not really the true picture... Back then they said they're able to keep prices low with March's purchase, in reality it does not really effect much because of the 2/3 govt quota (You sell 1 ton of rice this month, another 2 ton has to go to the govt's reserve)
so even you've sold up all your sellable rice, you are not allowed to touch the store's rice until new shipment arrives so end up this March price would only last for that batch of rice
Channel NewsAsia - 1 hour 17 minutes ago
SINGAPORE: A shopper at a FairPrice supermarket told Channel NewAsia he was not allowed to buy more than three packets of rice. FairPrice said the restriction is to protect consumer interest.
The supermarket chain is discouraging consumers from buying more than five 10—kilogramme packets of rice per shopping trip. The restriction is to prevent traders from taking advantage of the low price.
FairPrice said it offers one of the most competitive prices and has re—assured consumers that the supply of rice is adequate.
It also said most consumers should not be affected by the restriction. This is because most families take a while to finish a 10—kilogramme bag of rice.
Other major supermarkets — such as Sheng Siong, Cold Storage and Giant — have no such restriction.
The supermarkets have also said that the prices have stabilised and the rush to buy rice has also eased. — CNA/vm
"Price difference in rice a mistake?"
http://singaporeseen.stomp.com.sg/singaporeseen/viewContent.jsp?id=24419
Can buy 5 at one go is already very generous. You tell me which normal person buying grocery will buy 5 at one go?
Only traders/speculators or end-of-the-world pple would buy so many at one go. tsk..
Originally posted by QX179R:"Price difference in rice a mistake?"
http://singaporeseen.stomp.com.sg/singaporeseen/viewContent.jsp?id=24419
Yes, wrong price stated for rice, says Cold Storage
http://singaporeseen.stomp.com.sg/singaporeseen/viewContent.jsp?id=24727
just ask 10 ah neh to each buy 5 packet of 10kg lor...500Kg already lor... just give them money for kopi and they will be damn happy lor..
is like tat one
you try to 'stabilise' with cheaper prices lower than market prices this is wat happens... ugly behaviour...
If the prices are raised incrementally, at least it wun be so bad... worst end up you have nothing to sell