SABAK BERNAM: Consolidation of padi fields owned by individuals as "plantations" could be the norm for Malaysia in the future.
Ministry of Agriculture and Food Industries (Mafi) Padi and Rice Regulatory Division director-general Azman Mahmood said this was made possible through the Large-Scale Smart Padi Field (SMART SBB), a collaboration between the government, private sector and padi farmers.
He said through the initiative, padi farmers with vast skills and experience in the trade would also also be exposed to new technologies and knowledge.
At the same time, monitoring activities by the authorities are made easier through consolidation of padi fields owned by separate individuals by adopting the plantation concept, he said.
"It is a matter of having a better management. A proper system in place not only helps boost the padi yield, but also protects the padi from diseases as a collective, hence minimising losses.
"At the same time, it would enhance the country's padi production and self-sufficiency level (SSL) for rice output (the government has set a 75 per cent target by 2025 from 63 per cent this year)," he said in an interview.
Azman said SMART SBB enabled farmers to enjoy a higher profit instead of merely working on their padi fields individually.
He said a farmer earns upwards of RM1,540 per tonne of padi, plus a RM360 subsidy from the government.
"We will also be able to eliminate the involvement of middlemen in the supply chain. Farmers are able to sell their crops to be processed at rice factories without having to worry about having their income affected (to pay for middlemen)."
He said many farmers previously earned a pittance from padi production, making it an unattractive venture.
"In the past, farmers sold their crops to agents who acted as middlemen for rice factories. These agents only appear on days of collection. The farmers often fell victim to these agents who would intentionally reduce or delay payments."
Some, he said, they were forced to take up loans from the middlemen to sustain their operations, falling deeper into financial trouble.
Malaysia produces about 140,000 tonnes of rice per month and 1.7 million tonnes annually, while the monthly rice import stands at about 700,000 tonnes.
The public-private strategic partnership, which started in Feb this year, targets a total 300,000ha of padi farming area.
Almost 4,000 farmers have so far benefited from the programme. There are about 200,000 padi farmers in Malaysia, mostly involved in small-scale farming.