KUALA LUMPUR, Feb 13 — The floor price for padi will be standardised from RM1,300 to RM1,500 per metric tonne, effective Sunday.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the adjustment takes into account rising labour costs, increased prices of agricultural inputs such as fertilisers and pesticides, as well as the impact on rice production costs, which in turn affect market prices.
He also announced that the price of local white rice stays at RM2.60 per kg, with the government absorbing part of the production cost amounting to about RM150 million over a six-month period.
“This is to ensure the availability of around 24 million 10kg bags of local white rice in the market.
“In this regard, the ministry is currently finalising the implementation mechanism, which will be announced once the details are confirmed soon,” he said during a briefing on the padi and rice industry in the Dewan Rakyat today.
Mohamad also said his ministry is negotiating with Padiberas Nasional Bhd to review the price for imported white rice, currently at RM2,800 per metric tonne.
He added that the ministry is finalising negotiations with the Domestic Trade and Cost of Living Ministry and the Finance Ministry to allow service providers in the padi and rice industry to qualify for diesel subsidies under Budi Madani.
On efforts to reform the padi and rice industry to enhance its competitiveness, he said the ministry is reviewing the Control of Padi and Rice Act 1994 to align it with ongoing reforms.
“Last Friday, the government agreed to the proposal to establish the Malaysian Agrofood Regulatory and Enforcement Agency to strengthen regulatory and enforcement of the agrofood ecosystem, including the padi and rice industry,” he said.
Regarding the welfare of 230,119 padi farmers, Mohamad said the government cares about the group, which has faced various challenges such as rising production costs, climate change, pests, diseases, local white rice shortages, and weak irrigation infrastructure.
“In general, the input subsidy assistance provided to padi farmers in our country is the largest compared with other Asean countries,” he said.
Meanwhile, he told a press conference that the announcement on the adjustment of the padi floor price was made after considering the interests of all parties involved, including farmers, millers, and consumers.
“We cannot raise it directly to RM1,800 (which the farmers requested); what about the price of rice? Even now, the government has to intervene, which is why this decision balances the interests of everyone.
“However, this is for the next six months, and there is still a review in the following six months. We are open to feedback and meeting with relevant parties on this matter,” he said.
— Bernama
