Malaysia : Higher costs drive paddy farmers towards oil palm, threaten rice output
Rising fuel and input costs are pushing Malaysian paddy farmers to shift towards crops like oil palm. Diesel prices have surged, increasing production expenses and squeezing margins. Combined with heat stress and limited government support, this trend raises serious concerns over long-term rice production sustainability.
RISING operating costs are pushing some paddy farmers to consider switching to alternative crops such as oil palm, raising concerns over the sustainability of the country’s rice production.
In a report by Utusan Malaysia, a machinery operator and paddy farmer said higher input costs, particularly fuel, have increased pressure across the entire paddy production chain, forcing service providers to adjust their rates.
A machinery operator and paddy farmer, Hafizul Hamdan, said the sharp rise in diesel prices has significantly driven up operating expenses, leaving operators with little choice but to pass on the costs to farmers.
He said diesel prices have jumped from about RM43 per drum to around RM110.
“If prices are not increased, machinery operators like us will have to bear the losses,” he said.
He added that the burden ultimately falls on farmers, particularly those in rural areas who rely on machinery services, with both operators and farmers facing significant losses.
Hafizul also warned that rising costs, including the possibility of paddy seed prices increasing to as much as RM80 per bag, could discourage many farmers from continuing paddy cultivation in the next planting season.
Apart from rising costs, prolonged hot weather has also worsened the situation by affecting crop quality, as insufficient rainfall reduces nutrient absorption and results in lighter paddy yields.
He also questioned the adequacy of government assistance, saying the RM600 seasonal aid, limited to two or three planting cycles, is insufficient to offset rising costs.
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Source : The Malaysian Reserve
