Kuala Lumpur: The floor price for padi will be standardised from RM1,300 to RM1,500 per metric tonne, effective this Sunday (Feb 16). Agriculture and Food Security Minister Datuk Seri Mohamad Sabu announced the adjustment, which considers rising labour costs, increased prices of agricultural inputs like fertilisers and pesticides, and the effects on rice production costs influencing market prices.
According to BERNAMA News Agency, the price of local white rice will be maintained at RM2.60 per kilogramme, with the government absorbing part of the production cost amounting to approximately RM150 million over a six-month period. This measure aims to ensure the availability of around 24 million 10-kg bags of local white rice in the market. The ministry is currently finalising the implementation mechanism, which will be announced once confirmed.
Mohamad stated that negotiations are underway with Padiberas Nasional Berhad (Bernas) to review the price for imported white rice, currently at RM2,800 per metric tonne. Additionally, the ministry is finalising negotiations with the Ministry of Domestic Trade and Cost of Living and the Ministry of Finance to enable service providers within the padi and rice industry to qualify for diesel subsidy assistance under the Budi MADANI programme.
Efforts to reform the padi and rice industry are being made to enhance its competitiveness. The ministry is reviewing the Control of Padi and Rice Act 1994 to align it with the ongoing reform process. The government also agreed to establish the Malaysian Agrofood Regulatory and Enforcement Agency to strengthen regulatory and enforcement aspects of the agrofood ecosystem, including the padi and rice industry.
Mohamad highlighted the government's concern for the welfare of the 230,119 padi farmers facing challenges such as rising production costs, climate change, pest attacks, diseases, shortages of local white rice, and weak irrigation infrastructure. He noted that the input subsidy assistance for padi farmers in Malaysia is the largest compared to other ASEAN countries.
At a press conference, Mohamad explained that the floor padi price adjustment was made after considering the interests of all parties involved, including farmers, millers, and consumers. The government's decision balances these interests, even though farmers requested a direct increase to RM1,800. The current decision is for the next six months, with a review process for the subsequent period. The ministry remains open to feedback and meetings with relevant parties on the matter.