KUALA LUMPUR – While the government’s decision to increase the floor price for padi will not affect consumers and retailers since rice is price-controlled, it will not help boost the supply of local rice, said Mydin managing director Datuk Ameer Ali Mydin.
“No, (raising the floor price) won’t affect (consumers and retailers). They (millers) will be paying padi farmers more, from RM1,200 to RM1,300.
“This can help padi farmers with higher income… many of them are from the B40 category,” he told Scoop.
Local rice is price-controlled at RM2.60 per kg.
When tabling Budget 2024 on October 13, Prime Minister Datuk Seri Anwar Ibrahim announced that the floor price for padi would be raised from RM1,200 per tonne to RM1,300 per tonne to boost rice farmers’ income.
This was implemented yesterday with the announcement by the Agriculture and Food Security Ministry.
Raising the floor price for padi is expected to help farmers cover the rising cost of their inputs. The floor price of RM1,200 had been in place for 14 years.
“Our local rice price is still low compared to the imported rice, so the government has to increase the floor price first,” Ameer added.
However, the move would not help increase the availability of local rice supply, which Ameer said was due to “structural problems”.
He urged the government to open up more areas for padi cultivation to counter the rice shortage and promote rice production in Malaysia.
Malaysia’s hectarage of padi fields is still small when compared with neighbouring countries, he added.
“One billion hectares in Malaysia (for rice cultivation) compared with Thailand, which has 10 billion hectares,” he said.
Ameer also urged the government to ensure high-quality fertiliser for rice farmers to boost yields, as Malaysia’s low rice production prevents its agriculture sector from being competitive.
“The government must ensure the fertiliser is good so the farmers can harvest rice three to five times in a year or two years.
“Some places can only harvest rice once or twice a year,” Ameer said.
Local rice can only meet 70% of domestic demand, and the recent increase in the retail price of imported rice led to a “shortage” of cheaper, locally grown rice as people stocked up supply. Imported white rice retails for RM3 and more per kg. – October 21, 2023