Kuala Lumpur: The Federal Agricultural Marketing Authority (FAMA) will review floor prices for vegetables and fruits following requests from contract farmers facing rising agricultural costs. Its Director-General Abdul Rashid Bahri stated that the floor price review for products supervised by FAMA will occur every two years in collaboration with various agencies, including the Agriculture Department.

According to BERNAMA News Agency, Abdul Rashid Bahri emphasized that the study will focus on evaluating overall production costs. If an increase is identified, adjustments to the floor price will be made to ensure that contract farm participants are not burdened. He noted that FAMA has been able to purchase crops above the floor price, citing an example where watermelons are bought at the market price of RM1.80 per kilogram compared to the floor price of 80 cents, with potential for even higher purchase prices depending on demand.

The floor price review is part of the government's agenda to ensure national food security while providing farmers with fair earnings. Abdul Rashid Bahri mentioned that FAMA aims to add 500 contract farmers annually. Approximately 3,300 contract farmers nationwide are cultivating various crops, generating total sales revenue of RM63 million annually. Typically, FAMA surpasses the set sales target of RM53 million each year. Last year, they achieved RM63 million, and the same target of RM53 million is set for this year.