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Padi floor price adjustment helps farmers absorb costs

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Padi Purchase Floor Price Adjustment: A "Win-Win" Solution for All Stakeholders

Government Committed to Safeguarding Farmers’ Welfare and Well-being

Kuala Lumpur: The adjustment of the padi purchase floor price is not only welcome news for farmers but also helps them absorb rising production costs, ultimately increasing their income. In a statement today, the Muda Agricultural Development Authority (MADA) hopes that the price adjustment from RM1,300 to RM1,500 per metric ton, effective this Sunday, will provide a "win-win" solution for all stakeholders in the padi industry supply chain.

Challenges in the Padi and Rice Industry

The country’s padi and rice industry continues to face challenges such as climate change, rising costs, and global geopolitical uncertainties. However, the MADANI government remains committed to safeguarding the welfare of farmers and the well-being of the people while balancing the interests of all parties in the industry.

Support for Farmers and Rice Millers

MADA welcomed the announcement by Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, assuring consumers that the maximum retail price for local white rice (BPT) will remain at RM2.60 per kilogramme. To maintain this price, the MADANI government has allocated about RM150 million to rice millers for the first six months of this year. Through this initiative, 24 million 10-kilogramme BPT rice bags (priced at RM26 each) will be gradually introduced into the market during the first half of the year.

Budget Allocation for Padi Farmers

In Budget 2025, the MADANI government has set aside RM2.6 billion to support padi farmers, including agricultural input subsidies and output incentives, aimed at easing their financial burden while strengthening rice production.

Call to Action

MADA urged all parties to set aside differences and support government efforts to ensure food security remains a top priority at all times.

Conclusion

The padi purchase floor price adjustment is a step in the right direction, providing a "win-win" solution for all stakeholders in the padi industry supply chain. With the government’s commitment to supporting farmers and rice millers, the industry is expected to thrive, ultimately benefiting consumers with a stable and affordable supply of rice.

Frequently Asked Questions

  • What is the new padi purchase floor price?
    The new padi purchase floor price is RM1,500 per metric ton.
  • How will the price adjustment benefit farmers?
    The price adjustment will help farmers absorb rising production costs, ultimately increasing their income.
  • What is the maximum retail price for local white rice?
    The maximum retail price for local white rice will remain at RM2.60 per kilogramme.
  • How will the government support padi farmers?
    The MADANI government has allocated RM2.6 billion in Budget 2025 to support padi farmers, including agricultural input subsidies and output incentives.
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