KPKM Conducts Rice Structure Study To Safeguard Farmers, Consumers

KUALA LUMPUR, Feb 5 (Bernama) -- The Ministry of Agriculture and Food Security (KPKM) is conducting a study to examine the structure of domestic rice production following a drop in imported rice prices, the Dewan Rakyat was told today.

Minister Datuk Seri Mohamad Sabu said the exercise was aimed at ensuring the welfare of padi farmers while safeguarding the interests of consumers.

“Imported rice, not only from the United States but also from other countries, is currently quite cheap. That is why we need to structure (the price) of (domestic) rice, and we are conducting a special study, which will be tabled soon,” he said while winding up the debate on the motion of thanks for the Royal Address for KPKM today.

He added that any changes to the structure of the country’s rice must ensure that the low-income group, or B40, continued to have access to rice at a reasonable price.

“During the six months of the study, we found that 15 per cent of the people need rice at about RM26 for 10 kilogrammes. That is why, whatever changes are made, the interests of this group will not be overlooked,” he said.

Regarding the padi purchase floor price, which was raised from RM1,300 to RM1,500 per tonne starting in February last year, Mohamad said the government has agreed to keep the rate unchanged for now, despite requests from several parties for a further increase.

However, he assured that monitoring of padi production costs and market conditions would continue, and any significant changes affecting farmers’ welfare would be given due consideration in the future.

“The government would like to emphasise that the setting of padi floor prices must be carried out carefully and in a balanced manner, taking into account the entire padi and rice industry chain.

“Among the main factors considered are the structure of padi production costs and its implication on rice production costs. Other factors include its impact on consumer rice prices and the movement of prices in the international rice market,” he said.

Mohamad said an excessively sudden increase in padi floor prices without an appropriate support mechanism could trigger a chain effect, ultimately burdening consumers.

To strengthen support for padi farmers without relying solely on the floor price, he said the government has provided subsidies and incentives totalling RM2.62 billion this year.

“The current incentive for farmers is about RM4,000 per hectare, which is a relatively high subsidy compared with other ASEAN countries, making our subsidies among the highest,” he said.

--BERNAMA