Padi farmers are still getting RM1,700 per tonne, with RM500 subsidy, says Mat Sabu

The government will continue to provide a subsidy of RM500 per tonne to padi farmers, ensuring they receive a total purchase price of RM1,700 per tonne, according to Agriculture and Food Security Datuk Seri Mohamad Sabu. The Padi Price Subsidy Scheme, which has been in effect since 2014, sets a floor price of RM1,200 per tonne for padi purchases. While manufacturers are allowed to set their own purchase prices, they must not fall below the floor price.

Datuk Seri Mohamad Sabu confirmed that the government will still offer the Padi Price Subsidy Scheme incentive of RM500 per tonne to rice farmers. This will guarantee a minimum purchase price of RM1,700 per tonne, regardless of the miller’s price. These statements were made in response to complaints from padi farmers who expressed disappointment over the miller’s decision to lower the purchase price from RM1,700 per tonne to the floor price of RM1,200.

The Padi Price Subsidy Scheme plays an essential role in supporting the income of padi farmers. It ensures that they receive a fair and reasonable price for their produce, allowing them to sustain their livelihoods. By maintaining the subsidy of RM500 per tonne, the government aims to alleviate the financial burden faced by padi farmers.

Prior to the implementation of the floor price in 2014, padi farmers faced significant challenges as manufacturers were able to set extremely low purchase prices for their produce. This exploitation led to a decline in farmers’ income and threatened the sustainability of the rice industry. With the introduction of the floor price and subsidy scheme, padi farmers have been able to receive a more stable and reasonable income for their hard work.

The decision to maintain the subsidy reflects the government’s commitment to supporting the agricultural sector and ensuring the welfare of farmers. By providing a guaranteed minimum price for padi, the government aims to stabilize the rice market and protect the interests of farmers. This measure contributes to the overall growth and development of the agricultural industry in the country.

While the government sets the minimum purchase price, manufacturers still have the flexibility to set their own prices above the floor price if they wish to offer higher compensation to farmers. However, they are not allowed to offer prices lower than the floor price. This ensures that farmers receive a fair payment for their produce, regardless of market fluctuations or the miller’s bargaining power.

The subsidy scheme also plays a crucial role in preventing potential exploitation by manufacturers. It acts as a safeguard against unfair practices that could negatively impact the livelihoods of padi farmers. By setting a minimum purchase price and offering a subsidy, the government actively protects the interests and well-being of farmers, promoting a more equitable and sustainable rice industry in the country.

The support provided by the government through the Padi Price Subsidy Scheme and floor price regulation is vital in ensuring the long-term viability of the rice sector. These measures contribute to maintaining a stable and secure food supply for the nation, while also protecting the livelihoods of padi farmers who play a significant role in the agricultural landscape of Malaysia.

In conclusion, the subsidy of RM500 per tonne for padi farmers will remain in place, guaranteeing a purchase price of RM1,700 per tonne. This subsidy scheme, combined with the floor price regulation, aims to provide fair compensation to farmers, prevent exploitation, and support the growth of the rice industry in Malaysia.

– Bernama