KUALA LUMPUR – Datuk Seri Johari Abdul Ghani (Titiwangsa-BN) has suggested that the government raise the ceiling price of local white rice from RM26 per 10kg to RM32, while providing some RM460 million in subsidies for the B40 group.
Speaking in the Dewan Rakyat today, he gave a hypothetical scenario where suppliers are allowed to sell rice at RM32/10kg, as opposed to its ceiling price of RM26/10kg, and the government to pay the RM6 difference for 3.2 million B40 households.
He added that the government can slowly withdraw the subsidies once rice imports are back to normal.
Johari said allowing rice to be sold at a higher price can serve to encourage farmers to intensify their production, which would result in Malaysia being able to be self-sufficient and not have to rely heavily on imports.
“What’s important is that we want to encourage every (padi) farmer to get profits. Then, foreign companies view how the industry can be more profitable and will be directly involved to see how to develop the industry.
“If not, we will be facing this (rice shortage) issue forever,” he said when debating Agriculture and Food Security Minister Datuk Seri Mohamad Sabu’s statement on the rice shortage crisis.
Johari added that Vietnam was previously faced with similar rice import issues but has become the third-largest rice exporter exporter after India and Thailand, following which profits have flowed to the industry and farmers.
Earlier today, Mohamad said if the prices for imported rice go up without adjustments made by Bernas, the company would suffer from financial losses this year.
He added that the sale price for the rice will be adjusted by Bernas from time to time, subject to freight-on-board pricing and currency exchange rates.
Bernas adjusted its prices for imported rice from RM2,350 per tonne to RM3,200, effective September 1, and said it might lose its ability to share 30% of net profit from imports with padi farmers.
Meanwhile, Isnaraissah Munirah Majilis (Kota Belud-Warisan) told the lower House that farmers, manufacturers and consumers are most affected by the rice shortage.
Agreeing with Johari’s suggestion, she highlighted a conundrum that is faced by MPs – help farmers increase profits and face public backlash or maintain the ceiling price at the expense of the farmers.
“Once in a while, a decision must be made – even if it is painful – and should have been done since the beginning. This is a food issue. It is time to stop being political about something we eat every day,” she said. – October 9, 2023