Govt To Maintain Local White Rice Price Raise Floor Cost For Paddy

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PARLIAMENT | Agriculture and Food Security Minister Mohamad Sabu (Harapan-Kota Raja) has announced that the government will maintain the price of local white rice at RM2.60 per kilogramme.
During his briefing in the Dewan Rakyat today on concerns regarding the country’s paddy industry, Mohamad, also known as Mat Sabu, stated that the government would absorb part of the production costs for local white rice over the next six months.
“This RM150 million allocation for six months is to ensure the availability of local white rice supply, with approximately 24 million 10kg sacks in the market.
“We are currently finalising the implementation mechanism, which will be announced in the near future once the details are confirmed,” he said today.
Last week, Prime Minister Anwar Ibrahim assured that the government would find a fair solution that balances the interests of both paddy farmers and consumers. This includes an additional RM150 million in subsidies to stabilise local rice prices.
The issue gained attention after more than 200 farmers protested in Putrajaya, demanding an increase in the floor price of paddy from RM1,300 to RM1,800 per tonne.
In a press statement, Mohamad also announced that the government has agreed to adjust the floor price for paddy purchases from RM1,300 to RM1,500 per tonne effectively by this Sunday (Feb 16).
“This adjustment will help farmers cope with rising paddy production costs and subsequently increase their income,” the statement read.
Four MPs from both blocs then debated Mohamad’s announcement.
Ronald Kiandee (PN-Beluran) questioned whether the government could ensure that local white rice would not be repackaged and sold as imported rice at a higher price while Azli Yusof (Harapan-Shah Alam) proposed a special incentive for paddy farmers who could produce higher yields.
Winding-up speech
In his winding-up speech, Mohamad stated that the ministry was seriously considering the incentive proposal and would consult the Finance Ministry on its feasibility.
"We hope to implement incentives for those producing four tonnes and above.
“I will bring this proposal to the officials, the ministry, the Finance Ministry, and other relevant parties to determine whether we can provide special incentives for those with higher yields,” he added.
Additionally, he revealed that the cabinet had approved the deployment of about 1,200 personnel under a new agency called Maria last week.
These personnel will serve as enforcement officers to address issues related to paddy.
“The enforcement of this matter requires amendments to Act 522. This issue, particularly concerning rice, is being observed by everyone, including lawyers and other stakeholders. Before taking any action, we need to ensure that Act 522 is properly amended,” he said.
Act 522 of the Paddy and Rice Control Act 1994 regulates Malaysia’s paddy and rice industry, covering licensing, price control, subsidies, and import-export restrictions to ensure food security. It also grants enforcement powers to prevent illegal trade and market manipulation.
Concluding his speech, Mohamad reaffirmed the ministry’s commitment to resolving the many complex issues surrounding the paddy industry. He also announced that a new formula would be drafted after six months.
“Similarly, a major issue now is with landlords renting out paddy fields. The subsidies go to the landlords, while the farmers who actually work the fields do not receive them.
“This is a complicated issue to resolve because those cultivating the land do not get the subsidies, but the landlords, who are not involved in farming, do. This is the current situation, and we are working on the best way to address these technical challenges,” he added. - Mkini

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