Maintenance of Reserve Stock
The Government aims to maintain a reserve stock sufficient for consumption by the local population for a reasonable period of time, at present 15 days. The reserve stock is kept at all times to meet sudden surge in demand in case of short term shortage of supply or other emergencies, and is shared among all registered stockholders. The amount of reserve stock that a registered stockholder is required to hold for an import period is as follows:
- for the first import period in which a newly registered stockholder commences operation to import and maintain stock of rice, 17% of the quantity the stockholder has undertaken to import for that import period; or
- for a stockholder who has been a registered stockholder in the immediately preceding import period, 17% of the stockholder's offtake of rice in the immediately preceding import period. Such offtake means the total quantity of rice he delivered from the approved rice storage place(s) in the immediately preceding import period. If both the stockholder's offtake and the import quantity undertaken in the immediately preceding import period are zero, the amount of reserve stock for the current import period will be 17% of the quantity he has undertaken to import for the current import period.
Notwithstanding the above, the Director-General of Trade and Industry ( " the Director-General " ) has full discretion to specify the amount of reserve stock that a registered stockholder is required to maintain at all times.
Each stockholder must fill up in full his reserve stock before the commencement of his registration period. The stockholder is required at all times during the validity of his certificate of registration to maintain no less than that quantity of the reserve stock of rice as specified in the certificate and such stock shall be in his sole ownership and immediate possession.
All stock of rice maintained by a stockholder, including the reserve stock, has to be stored in rice storage place(s) approved by the Director-General and maintained in good condition to the satisfaction of the Director-General of Trade and Industry. If the registration of a stockholder is cancelled, either by the Director-General or upon the request of the stockholder, the stockholder should dispose of his stocks in accordance with the direction given by the Director-General. At times of emergency, the Director-General may direct stockholders to dispose of their stocks to maintain a stable supply of rice in the market.