KUALA LUMPUR: The Agriculture and Food Security Ministry believes that the ceiling price for local rice needs to be reviewed, taking into account current production costs, future cost projections and the movement of global white rice prices.
Minister Datuk Seri Mohamad Sabu said the maximum price for local white rice (BPT) has been set at RM2.60 per kg since 2008 to ensure the public can buy rice at an affordable price, following a sharp increase in global rice prices.
"However, after 16 years, the maximum price for local rice has not been reviewed. The selling price of BPT is directly related to the purchasing price of padi.
"Since 2008, the floor price for padi purchases has been increased from RM750 per metric tonne to RM1,200 per metric tonne in 2014, and more recently to RM1,300 per metric tonne, while the price of BPT remained unchanged," Mohamad said in a written response to a question by Nurul Amin Hamid (PN-Padang Terap) in the Dewan Rakyat yesterday.
He said the ministry has established a task force to examine issues related to the country's padi and rice industry, including a study on the competitiveness of padi and rice pricing structures.
"The ministry is also awaiting the findings of a study on the padi and rice industry, which will be presented by the Malaysia Competition Commission (MyCC) soon.
"The results of this study will serve as a reference for the ministry to improve the padi and rice industry through the task force that has been set up.
"The ministry is committed to ensuring that the welfare of padi farmers remains a priority and will be given the necessary attention," he said.
Late last year, the Malaysia's Rice Millers Association guaranteed that it would raise the padi purchase price to RM1,500 per metric tonne if the ceiling price for local white rice (BPT) is raised to RM3.20 per kg.
This follows the government's move to review the ceiling price of BPT in an effort to safeguard the future of all stakeholders in the food production chain, especially padi farmers.