Kuala Lumpur: The adjustment of the padi floor price to RM1,500 per tonne, effective this Sunday, is anticipated to help offset the burden of operating costs faced by farmers.

According to BERNAMA News Agency, the decision to increase the floor price demonstrates the government's commitment to addressing the grievances of grassroots farmers, particularly those grappling with escalating agricultural input costs, such as pesticides and fertilizers. Padi farmer Saipol Bahri Sahlan, 64, expressed that with the new floor price, the selling price could potentially rise to RM1,650 or even RM1,800, offering much-needed relief to farmers.

Saipol Bahri, who manages a four-hectare padi field in Kampung Sawah, Tanjong Karang, believes this adjustment will help stabilize the final price of locally produced white rice for consumers. He emphasized that the public should recognize that farmers are not requesting a higher floor price without justification, as the costs of essential inputs like pesticides have significantly increased.

Another padi farmer, GK Nadarajan, 64, highlighted that the new floor price not only safeguards farmers' welfare but also holds the potential to enhance the quality of local rice. The additional profit could allow farmers to invest in better agricultural technology or use higher-quality fertilizers, thereby boosting their harvests.

Meanwhile, Universiti Teknologi MARA (UiTM) Faculty of Business Management senior economics lecturer Dr. Bashir Ahmad Shabir Ahmad predicted a two to five percent increase in the price of locally produced rice for end consumers due to the floor price adjustment. However, he noted that this increase remains lower than the price of imported rice and could be balanced by ensuring sufficient domestic demand and supply.

The government has also allocated an additional RM150 million to the sector to cover operational costs and maintain stable local rice prices. This move is expected to offer wider economic benefits and make the industry more appealing to young people by providing better returns.

During a ministerial briefing in the Dewan Rakyat, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu announced the increase in the floor price from RM1,300 to RM1,500 per tonne. He also confirmed that the price of local white rice would remain at RM2.60 per kg, with the government absorbing approximately RM150 million in production costs over a six-month period.