THE SSL STRATEGY OF PADDY IN MALAYSIA

The Malaysian government had targeted for the rice industry in the country to achieve 100% rice self-sufficiency where Malaysia’s rice Self-Sufficiency Level (SSL) is currently at 65% to 75%. Thus, the government had implemented few policies to increase the rice production in Malaysia in order to meet the growing demand of rice. In this paper, the effect of price support on the rice production system in Malaysia is investigated. This study utilizes the system dynamics approach of the rice production system in Malaysia where the complexity of the factor is interrelated and changed dynamically through time. Scenario analysis was conducted using system dynamics model by making changes on the price subsidy to see its effect on the rice production and rice SSL. The system dynamics model provides a framework for understanding the effect of price subsidy on the rice self-sufficiency level. The scenario analysis of the model shows that a 50% increase in the price subsidy leads to a substantial increase in demand as the rice price drops. Accordingly, the local production increases by 15%. However, the SSL slightly decreases as the local production is insufficient to meet the large demand. This article in "Anim Agriculture Technology" I would like to share about the SSL strategy and government allocation for paddy industry in Malaysia.

The Ministry of Agriculture and Security Food through the 2023 Budget received a total of RM1.6 billion to support the efforts of paddy production in the country is secured. The allocation will be used for various subsidies and incentives such as controlling the price of rice, and providing fertilizer for paddy that can assist farmers in keeping their costs manageable.  Minister Datuk Seri Haji Mohamad Sabu said in line with the implementation of the National Agro-Food Policy 2021-2030 (AND 2.0) to increase production capacity and reduce dependence on imported sources, the food security agenda will continue to give emphasis through several initiatives, especially the benefits to rice farmers nationwide. Out of the RM1.6 billion allocation, RM228 million will benefit 240 thousand paddy farmers who will receive a contribution of RM200 per month for a period of three months or seasonally. In addition, Bernas will also share 30 percent of the net profit from rice imports with rice farmers. In ensuring the country’s rice production is secured, MAFS initiated the Smart Large Scale Paddy Field (Smart SBB) program with the aim to increase the average yield of rice per hectare national to 7 metric tons under the 12th Malaysia Plan. KPKM is actively developing 300,000 hectares of planting area per year in stages through this program. The development of this program was made through the collaboration between KPKM and FGV Integrated Farming Holdings Sdn. Bhd. in Selangor and Perak. However currently, the SBB’s SMART program covered 1,500 hectares in 2022 increasing by 435 percent compared to ​​280 hectares in 2021. Subsequently, 724 rice farmers have benefited from the net return of the rice harvest which increased by 28 percent amounting to RM1,540 per metric ton compared to RM1200 before. Thanks...

By,

M Anem,

Senior Agronomist,

Putrajaya,

Malaysia.

(August 2023).