Minister muses whether RM2.60 per kg for local rice is too low

PARLIAMENT | Agriculture and Food Security Minister Mohamad Sabu appeared to suggest today that the price of local rice might be too low.

He told the Dewan Rakyat that, according to industry players, the controlled price of local white rice is not competitive.

“Since 2008, the price of local white rice has been set at RM2.60 per kg to ensure that people can get rice at an appropriate price.

“At the time, the price of one tonne (of paddy sold by farmers) was around RM900.

“Now it is RM1,300. Should (the price of local white rice) remain at RM2.60?” he asked.

Mohamad also said the government is considering standardising the price of rice for all states.

He noted that prices were determined by businesses based on local dynamics but insisted that price stability must be ensured.

“A detailed study on the new price adjustment will be finalised in the near future.

“This study aims to ensure the stability of rice prices in all areas and to help increase the income of rice farmers fairly,” he said.

Mohamad also admitted that there is inadequate monitoring of the local rice supply.

“Enforcement must be increased from time to time.”

Additionally, he announced that Pasir Puteh in Kelantan has successfully increased its paddy yield from three to 10 tonnes per hectare.

“If we did that in the whole of Malaysia… we would have enough rice in Malaysia,” he said.

On Saturday, Domestic Trade and Costs of Living Deputy Minister Fuziah Salleh said Prime Minister Anwar Ibrahim will soon expose a rice and paddy cartel.

She said the Malaysia Competition Commission (MyCC) had completed a report on the matter but could not reveal it for now.

Meanwhile, Anwar announced in September that the government is planning several mega agricultural projects totalling RM5 billion, including the first phase of a large-scale paddy cultivation intiative.

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