KUALA LUMPUR: A Cabinet paper on the new floor price for padi will be presented next week, says Prime Minister Datuk Seri Anwar Ibrahim.
He said Agriculture and Food Security Minister Datuk Seri Mohamad Sabu would reveal the new price and explain the projected effects on both farmers and consumers.
“This is an important issue. Even an additional RM1bil allocation for padi farmers would not be enough to cover production costs," he said during Prime Minister's Question Time in the Dewan Rakyat on Tuesday (Feb 4).
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"Therefore next week, the minister will present a paper (to the Cabinet) to announce and explain the new price."
Anwar said the government had agreed to bear an additional RM150mil subsidy cost for the first six months of this year to strike a balance between the rising production costs for farmers and rice prices to consumers.
He also said a further RM1bil would be channelled to the Muda Agricultural Development Authority (Mada) to increase padi production and meet local demand for rice.
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“This (will take place) at the end of this month to increase productivity and increase rice supply (to meet) local demand from 56% to 70%,” he added.
Datuk Seri Ronald Kiandee (PN-Beluran) had asked the government to state whether or not it will review the existing policy of producing 70% of local rice needs and importing the other 30%.
Last week, it was reported that over 1,000 padi farmers from across the country submitted a memorandum to the Prime Minister demanding that the padi floor purchase price be raised to RM1,800 per tonne.
Previously, it was proposed that the floor price had been set at RM1,300, which they opposed.
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Anwar also denied claims that the rationalisation of diesel subsidies implemented last year would lead to an increase in rice production costs.
He said the government listed padi farmers among recipients of the Subsidised Diesel Control System (SKDS).
“Share the names of padi farmers who are burdened by the increased diesel cost – we (the government) will reimburse them.
“It’s guaranteed that farmers and smallholders can still buy subsidised diesel.
“Furthermore, the government also allocated RM600 annually per farmer, which should be enough to bear fuel costs," he added.
