Pressure point: It has been pointed out that the RM2.60 per kg ceiling for local white rice is no longer sustainable due to rising production costs. — MUHAMAD SHAHRIL ROSLI/The Star
PETALING JAYA: Rice farmers and retailers are urging the government to set a realistic floor price to secure food sovereignty and stabilise supply.
According to them, this is necessary because outdated price controls and the RM2.60 per kg ceiling for local white rice are no longer sustainable due to rising costs.
Malaysia Padi Farmers Brotherhood Association chairman Abdul Rashid Yob proposed a price band of RM3.20 to RM3.80, or alternatively the removal of the ceiling price altogether, to allow the industry to adjust to global currency movements and ensure long-term stability.
“The supply of local rice is there, but millers cannot sustain RM2.60 when production costs are already at RM3. The problem lies in the price itself. To harmonise the industry, the government must introduce a floor price,” he said.
“This way, farmers can breathe, millers can keep operating, and consumers will still have access to affordable rice.”
To cushion the impact on households, Abdul Rashid suggested increasing monthly subsidies under the Sumbangan Asas Rahmah (Sara) programme.
“Even if it costs the government an extra RM3bil or RM4bil, it has a duty to safeguard our food sovereignty,” he said.
Abdul Rashid noted that the last revision of the local white rice price was 17 years ago, despite surging costs.
“Farmers now spend RM1,500 to produce one metric tonne of padi. The government must review the purchase price and raise it to RM1,800 per tonne to reflect today’s realities,” he said.
The local white rice subsidy scheme, which ran from March to August, distributed 2.4 million bags of 10kg subsidised local rice at RM26 each across Peninsular Malaysia, benefiting 400,000 low-income households.
While the scheme ended on Aug 31 and has not been extended, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the government is reviewing the supply mechanism and monitoring prices to ensure continued access to affordable rice.
Mydin managing director Datuk Ameer Ali Mydin echoed similar concerns, saying that price controls were the main reason behind shortages.
“No supplier is willing to sell at the controlled price of RM26 per 10kg because the subsidy is gone.
“First, remove price controls and let the market find its level. Then we will know if local rice is sellable,” he said.
He noted that imported rice now retails at RM30 to RM32 per 10kg, making the narrow price gap unattractive for local rice.
“The government wants to give the B40 group cheaper rice, but the reality is there is no cheaper rice. Everyone is buying imported rice at different prices. It’s better to have rice in the market than none at all,” he added.
Ameer estimated that once subsidies are removed, local rice could rise to around RM29 per 10kg.
“But people must remember our local rice is of very good quality. The market should decide based on price and quality,” he said, calling for at least a RM4 to RM5 price gap between local and imported rice to keep demand for local varieties strong.
A rice wholesaler, who did not want to be named, said producers had struggled to maintain supply since the subsidy ended.
“With subsidies, we could still support local rice production. But now, without aid and with rising costs, selling at RM2.60 per kg means we are effectively operating at a loss,” he said, adding that promised subsidies had yet to be disbursed.
