Intervention measures can restabilise rice supply in Malaysia, say experts

The government has implemented four additional intervention measures in response to the issue of rice supply in the country, aiming to stabilize the supply of this essential food source. Emir Research president and CEO Datuk Dr Rais Hussin Mohamed Ariff believes that these measures are crucial to ensuring enough rice supply to meet domestic demand and create a surplus that can be distributed to suppliers, regardless of whether it is local or imported white rice. He emphasized that supply, rather than market preference, is the determining factor at the current time.

Earlier, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu announced the implementation of four intervention measures in a press conference. These measures include increasing the distribution of local white rice to rural areas and retail outlets, as well as providing a subsidy of RM950 per metric tonne for imported white rice in Sabah and Sarawak. This subsidy aims to ensure that imported rice is available at a retail price of RM31 per 10kg in these regions.

Rais Hussin emphasized the importance of cooperation between local rice manufacturers, wholesalers, and the Federal Agricultural Marketing Authority (Fama) to expedite the rice supply solution. He suggested that Fama could assist the private sector in terms of warehousing and transport costs when there is a surplus of supply, and this collaboration could be formalized through contracts and agreements. Additionally, he proposed the establishment of a new agency, the Food Security Agency, which could set up warehouses outside of Fama’s jurisdiction for storing excess rice stock.

Rais Hussin also welcomed the Agriculture and Food Security Ministry’s efforts to discuss rice imports with India’s Ministry of Agriculture and Farmers’ Welfare, and urged similar discussions with major rice-producing countries like Vietnam. Meanwhile, Prof Dr Mohd Rafii Yusop, the director of the Institute of Tropical Agriculture and Food Security (ITAFoS) at Universiti Putra Malaysia (UPM), suggested extending the imported white rice subsidies to the Peninsula, as many low-income groups are also facing the issue of local rice shortage.

In terms of long-term food security, both Rais Hussin and Prof Dr Mohd Rafii Yusop emphasized the need to increase padi farming areas and improve the productivity of existing fields through training and agricultural development activities. This would enable padi farmers to adopt the best agricultural practices.

Datuk Paul Selva Raj, the secretary-general of the Federation of Malaysian Consumer Associations (Fomca), supported providing wholesale prices or subsidies to suppliers but called for strict monitoring to prevent an increase in the selling price to consumers. He also highlighted the importance of finding holistic and long-term solutions beyond rice subsidies, noting that the country’s heavy reliance on imported rice is unsustainable.

“Our rice production is still around 60% to 70%, so to overcome the rice supply problem, we need to increase production and make efforts in that direction,” said Raj.

– Bernama