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Rice import controls to end

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The 45-year-old rice import system is set to be scrapped, with consumers likely to benefit from an initial price war.

The quota system and licensing mechanism on importers and wholesalers would be replaced by a new registration scheme by 2003, industry sources said.

However, the Government will retain the long-standing policy on rice storage.

Traders said a price war when the market first opened could benefit the consumer, although prices might then rise again.

At present the rice trade is controlled by a scheme that limits the number of operators. A total of 1,000, 90-tonne quotas are distributed among importers.

They are required to keep a reserve stock to provide 45 days of consumption and currently store 40,000 tonnes in depots.

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