KUALA LUMPUR (Feb 4): Prime Minister Datuk Seri Anwar Ibrahim said on Tuesday that the government will announce a new floor price for paddy to support farmers, and provide subsidies to cap prices for consumers, as part of efforts to safeguard the country’s rice supply.
The minister of agriculture and food security will present a ministerial paper on paddy issues to Parliament next week, addressing concerns and announcing the new floor or base price for paddy purchases nationwide, Anwar said.
Currently, the nationwide floor price for paddy stands at RM1,300 per tonne, which was increased by the unity government in 2024 from RM1,200 previously. Factories are not allowed to purchase below this price.
The government is also expected to fork out a minimum of RM150 million in subsidies over at least six months to stabilise the local rice market price, Anwar said.
“Bear in mind that increasing the paddy floor price would lead to a price increase at the consumer end. We do not want prices to rise for consumers,” Anwar told the lower house of Parliament on Tuesday.
Last week, Pertubuhan Persaudaraan Pesawah Malaysia (PeSAWAH), an association representing paddy farmers, urged the government to consider its proposal to raise the paddy floor price from RM1,300 per tonne to RM1,800.
PeSAWAH also submitted a proposal to the Prime Minister’s Office to reflect the urgent needs of paddy farmers nationwide.
In the Dewan Rakyat, Anwar denied claims that the rationalisation of diesel subsidies implemented last year had led to an increase in rice production costs.
He said the government had included paddy farmers among the recipients of the Subsidised Diesel Control System (SKDS).
“In addition, the government has also allocated RM600 annually per farmer, which should be sufficient to cover fuel costs,” he added.
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Source : The Edge Malaysia
