Singapore’s beloved hawker food may get pricier as rice costs rise

SINGAPORE: As the price of rice has gone up recently, this has meant a corresponding rise in prices at hawker stalls, which Singaporeans have long depended on for delicious but affordable fare. 

The price of Thai white rice, a benchmark in Asia, rose by 20% last month, the highest monthly increase seen in data since 2008, Bloomberg reported on May 30.

According to a Jun 16 video report from Al Jazeera, this has affected the price of nasi lemak and other rice-based dishes served by hawkers.

The report attributes higher rice prices, at least in part, to the closure of the Strait of Hormuz, which has impacted the supply of fuel and fertilizer, leaving rice farmers significantly affected.

The report featured the owner of a hawker stall in Toa Payoh, where the cheapest rice dish costs just US$0.80 (just over S$1.00), the same price it has been for 30 years.

Mohamed Hajirin Tahir, the second-generation owner of Kedai Makan Muhajirin, noted that because many of their customers are elderly, they strive to keep prices down so that “everyone can still taste the traditional nasi lemak.” 

“Rising costs in recent years have already forced hundreds of vendors out of business. Now a surge in rice prices could squeeze many more,” said Al Jazeera’s Patrick Fok, who also noted that Asia accounts for around 90% of rice consumption across the globe, making it particularly vulnerable to price shocks.

Due to the disruption in fuel and fertiliser supply since Feb 28, when the conflict in the Middle East began, it has widely been reported that rice farmers in Asia have skipped or delayed planting. 

Adding to this is the complication of the weather, as some rice-producing countries have experienced drier than usual conditions, which is likely to mean a smaller supply and therefore higher prices.

The video underlined that some of Singapore’s hawkers have had to balance costs. 

Mr Mohamed said that higher rental costs could mean “a big problem” for his business, as this will cause prices to rise.

However, he added that before the stall raises prices, they talk to the customers first, almost like asking for permission.

“Hawker stalls are deeply embedded into Singapore life, where people from different backgrounds can get a cheap meal. The government says helping operators sustain their livelihoods is a priority, and most customers here say they’ll remain loyal even if prices change,” added Mr Fok.

And while one woman told Al Jazeera that she will still continue to eat at hawker centres if prices go up, Mr Fok added that if this does happen, it could cause many businesses to “struggle to go on.” /TISG

Read also: ‘Monitoring again?’ Singaporeans ask why gov’t still has to watch food prices before giving hawkers more assistance