Malaysia Govt must be cautious about padi floor price, says farmers’ group
Malaysia’s LPP chairman Datuk Mahfuz Omar cautioned against raising the padi floor price, warning it could increase rice costs for consumers. While millers set actual prices above the RM1,300 per tonne floor price, farmers demand a review amid rising production costs. Mahfuz urged farmers to focus on improving yields to boost income instead of relying on price hikes.
ALOR STAR: Malaysian Farmers’ Organisation Authority (LPP) chairman Datuk Mahfuz Omar has urged the government to tread carefully on the padi purchasing floor price issue.
He said any increase in the floor price would lead to a higher ceiling price for local white rice, currently set at RM26 per 10kg packet, due to rising production costs.
“There must be a win-win approach that benefits all parties, including farmers, millers, and consumers.
“The government must consider everyone, not just padi farmers.
“Many of their children do not work in the fields — they now live in cities like Kuala Lumpur and Johor Baru, and consumers need affordable rice.
“That is why the government must carefully consider all these factors to ensure a balanced outcome for all,” he said after distributing back-to-school aid today.
Mahfuz clarified that the government only sets a floor price for padi, not the actual purchasing price.
“In reality, the government does not buy padi. Millers do, and the government only sets the floor price.
“For instance, if the floor price is RM1,200 to RM1,300 per tonne, millers typically buy padi at higher rates, between RM1,700 and RM1,900.
“When the government set the floor price at RM1,300, millers were still paying RM1,800 per tonne, so there was no issue of low prices.
“Farmers must understand that padi prices are ultimately determined by millers,” he added.
In recent weeks, padi farmers’ groups have staged peaceful demonstrations, urging the government to raise the RM1,300 per tonne floor price after rice millers decided to buy rice at the floor price.
Recently, Malaysian Padi Farmers Brotherhood Organisation (Pesawah) chairman Abdul Rashid Yob said the price was unfair and did not reflect the rising cost of padi production.
Rashid called for a review of the RM2.60 per kg ceiling price for local white rice, which has remained unchanged since 2014.
Meanwhile, Mahfuz said farmers should focus on improving yield quality and quantity rather than solely pursuing higher prices to sustain themselves and the industry.
“Some farmers only produce two tonnes per hectare because they assume they can still earn RM1,800 per tonne.
“So, they do not put in full effort, thinking they can rely on the price.
“Farmers could achieve seven tonnes per hectare or more, significantly increasing their earnings, if they focused on maximising their yield. The more they produce, the higher their income,” he said.
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Source : New Strait Times
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