KPKM studies rice price structure to protect farmers and consumers

The Ministry of Agriculture and Food Security is examining domestic rice pricing to balance farmer welfare with affordable consumer costs, amid cheaper imports.

KUALA LUMPUR: The Ministry of Agriculture and Food Security (KPKM) is conducting a detailed study on the structure of domestic rice production.

Minister Datuk Seri Mohamad Sabu told the Dewan Rakyat the exercise aims to safeguard padi farmers’ welfare while protecting consumer interests.

“Imported rice, not only from the United States but also from other countries, is currently quite cheap,” he said.

“That is why we need to structure (the price) of (domestic) rice, and we are conducting a special study, which will be tabled soon.”

READ MORE: KPKM monitors local white rice price at RM2.60 per kg after subsidy ends

He stressed any changes must ensure the B40 group retains access to reasonably priced rice.

“During the six months of the study, we found that 15% of the people need rice at about RM26 for 10 kilogrammes,” Mohamad said.

“That is why, whatever changes are made, the interests of this group will not be overlooked.”

On the padi purchase floor price, the minister said the rate will remain at RM1,500 per tonne.

It was raised from RM1,300 per tonne in February last year.

He said the government will continue monitoring production costs and market conditions.

Any significant changes affecting farmers’ welfare would be considered in future.

“The government would like to emphasise that the setting of padi floor prices must be carried out carefully and in a balanced manner,” he said.

“It must take into account the entire padi and rice industry chain.”

He warned an excessive, sudden price increase could trigger a chain effect burdening consumers.

To support farmers beyond the floor price, the government has allocated RM2.62 billion in subsidies and incentives this year.

“The current incentive for farmers is about RM4,000 per hectare,” Mohamad said.

“This is a relatively high subsidy compared with other ASEAN countries, making our subsidies among the highest.” – Bernama