REPORTED recently in Malaysia that new floor price for padi to offer relief to farmers facing rising production costs. Previously in early Febuary 2025 a group of padi farmers in Jerlun during a peaceful gathering to demand for the government to increase padi floor price to RM1,800 per metric ton from RM1,300 per metric ton (See photo below). Later the new floor price for padi, set to be announced next week, is expected to provide much-needed relief to farmers struggling with rising production costs. The economists believe the move will have a positive impact, especially given the economic challenges faced by farmers. According too Prof Dr Yeah Kim Leng, senior fellow and director of the Economic Studies Programme at the Jeffrey Cheah Institute on Southeast Asia at Sunway University has said the new floor price would be a welcome relief for farmers grappling with higher production and living costs. Padi farmers are among the low-income groups, and continued government support is crucial to ensuring adequate rice supplies at low prices while the purpose of safeguarding the country's medium- to long-term food security. This article in "Anim Agriculture Technology" I rewrite a local media report about the announcement of new floor price of padi in Malaysia.
Actually, the ideally, income support should be tied to higher output, increased yields, and improved productivity, so that the nation's self-sufficiency ratio for rice can be raised to a more comfortable level of 70 to 80 per cent, with production costs that are competitive with imported rice. A n experts said that more research and extension efforts are needed to raise the income of poor farmers through yield and productivity improvements, thereby reducing dependency on government subsidies and income support. The price support for farmers would not affect consumers in which the amount is not passed through, at least for controlled prices, while imported rice is based on market prices determined by supply and demand as well as consumer preferences. Furthermore subsidies are being rationalised from a general to a targeted system, allowing the government greater affordability and fiscal flexibility to sustain subsidy schemes. Economist Dr Geoffrey Williams also said the new floor price for padi would help increase the income of padi farmers and local communities. In the short term, it will keep padi farmers in production. In the long term, it may encourage higher output to take advantage of the higher price, but other factors, such as production costs and market access, are also important. Almost certainly, suppliers, wholesalers, and retailers will complain about higher costs being passed on to consumers. Therefore, strong regulations must be introduced to prevent profiteering. He said that in terms of fiscal impact, the RM150 million in subsidies over six months following the price hike is relatively small and will not affect fiscal policy. However, price controls, floor prices, and subsidies are not long-term solutions. The entire industry must review its production, supply chain, and business model to ensure sustainable incomes for farmers, as well as higher supply and yields to keep prices affordable for consumers. In local media t=reported that earlier today, Prime Minister Datuk Seri Anwar Ibrahim, during the Prime Minister's Question Time in the Dewan Rakyat, announced that a new floor price for padi would be revealed next week. Agriculture and Food Security Minister Datuk Seri Mohamad Sabu is set to present a Cabinet paper on the price adjustment. He said the government would allocate an additional RM150 million in subsidies over six months following the price hike, stressing that any price increase for farmers would not result in higher costs for consumers. On Jan 27, 2025 the Malaysian Padi Farmers Brotherhood Organisation (Pesawah) and around 300 farmers from the peninsula called for immediate government intervention to raise the padi floor price to RM1,800 from the current RM1,300. Thanks!.
No comments:
Post a Comment