Hoarding of rice

The leader of a neighbouring country said that the traders are hoarding rice, creating an artificial shortage leading to escalation in its price. This is making life hard for the ordinary people.

This is an example of the failure of the free market. It applies not only to the price of rice, but other essential commodities as well.

In Singapore, we are fortunate to have a co-operative in Singapore (i.e. NTUC Fairprice), that provides essential commodities based on its cost plus a margin to cover expenses and profit. This helps to moderate price increases.