New Padi Floor Price To Assist Farmers In Coping With Rising Costs

SHAH ALAM, Feb 13 (Bernama) -- The adjustment of the padi floor price to RM1,500 per tonne, effective this Sunday, is expected to be able to offset the burden of operating costs borne by farmers.

Padi farmer Saipol Bahri Sahlan, 64, said the decision demonstrated that the government took the grievances of grassroots farmers seriously, particularly those struggling with rising agricultural input costs, such as pesticides and fertilisers

“Farmers are complaining about the low purchase price because they’re not making much profit. But with the floor price now at RM1,500, the selling price could go up to RM1,650 or even RM1,800.

“The public needs to understand that padi farmers aren’t just asking for a higher floor price for no reason. For instance, pesticides used to cost RM50 for half a litre, but now it’s RM80, and it can even hit RM100. This price difference needs to be addressed for the farmers’ benefit,” he told Bernama.

Saipol Bahri, who cultivates a four-hectare padi field in Kampung Sawah, Tanjong Karang, said he believed that adjusting the floor price would help keep the final price of locally produced white rice stable for consumers.

Another padi farmer, GK Nadarajan, 64, said the new floor price not only protected farmers’ welfare but also had the potential to improve the quality of local rice.

“With some extra profit, farmers can invest in better agricultural technology or use higher-quality fertilisers to boost their harvest.

“The increase may not be as much as we hoped for, but it's still a good move that gives everyone some relief,” said Nadarajan, who runs a padi field in Sungai Burong, Tanjong Karang.

Meanwhile, Universiti Teknologi MARA (UiTM) Faculty of Business Management senior economics lecturer Dr Bashir Ahmad Shabir Ahmad predicted that adjusting the floor price would result in a two to five per cent increase in the price of locally produced rice for end consumers.

However, he said this increase was still significantly lower than the price of imported rice and could be balanced by ensuring sufficient domestic demand and supply.

“The government has also agreed to allocate an additional RM150 million to this sector to cover operational costs and ensure that the final price of local rice remains stable,” Bashir said.

He said this decision would also have wider economic benefits, making the industry more attractive to young people by offering better returns.

During a ministerial briefing on the state of the country’s rice and padi industry in the Dewan Rakyat today, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu announced that the floor price would be raised from RM1,300 to RM1,500 per tonne, effective this Sunday.

He also confirmed that the price of local white rice would remain at RM2.60 per kg, with the government absorbing about RM150 million in production costs over six months.

-- BERNAMA