FAMA To Review Floor Price For Contract Farmers Amid Rising Costs

PASIR PUTEH, Feb 23 (Bernama) -- 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 said the floor price review for products supervised by FAMA will occur every two years in collaboration with various agencies, including the Agriculture Department.

"Based on the study, we will evaluate the overall production costs. If an increase is found, we will adjust the floor price accordingly to ensure that contract farm participants are not burdened.

"So far, FAMA has been able to purchase crops above the floor price. For instance, we buy watermelons at the market price of RM1.80 per kilogram compared to the floor price of 80 cents, and the purchase price can go even higher depending on demand," he told reporters at the Watermelon Purchase Agreement Signing Ceremony in Kampung Haji Wan Omar today, which Kelantan FAMA Director Wan Faizatul Aniza Ismayatim also attended.

The floor price review was part of the government's agenda to ensure national food security while providing farmers with fair earnings, and FAMA aims to add 500 500 contract farmers annually, he said.

"Approximately 3,300 contract farmers nationwide are cultivating various crops, generating total sales revenue of RM63 million annually.

"Typically, we surpass the set sales target of RM53 million each year. Last year, we achieved RM63 million, so we have set the same target of RM53 million for this year," he said.

-- BERNAMA