Malaysia’s rice subsidy gets praise, but not from farmers

KUALA LUMPUR – Father-of-two Ahmad As-shakir has had to choose the cheapest rice in the market to feed his family.

“It’s almost fit for chicken feed,” the 39-year-old technician lamen­ted.

Cleaner Halimah Samadi, 55, has the same problem – she always buys the cheapest brand as a way to make ends meet.

Therefore, the government’s decision to maintain the price of local white rice at RM2.60 per kilo by absorbing about RM150mil in production costs for six months comes as welcome news for many lower-income earners like them.

Ahmad, from Gombak, said that with increased costs of living and Ramadan coming, this rice price control was good news.

“I usually buy the cheapest rice in the shop and most times, it is of the lowest quality.

“Knowing we can now get good- quality rice, even if it’s just for six months, is something I look forward to,” said Ahmad.

Halimah, from Cheras, said that with her monthly pay of RM1,800, she would always choose the cheap­est brands of rice.

“It is good that they are starting this programme on the first day of Ramadan. We can also look forward to having good-quality rice on Hari Raya.

“However, I hope the authorities will be strict in ensuring there is no hoarding like what happen­ed with subsidised cooking oil in packets a few years back,” she said.

Malaysia Rice Grain Whole­salers Association deputy secretary Allen Lim praised the government for its decisive and swift action in easing the operational pressures on rice mills, helping to prevent more small and medium- sized mills from shutting down.

He said the Ukraine-Russia conflict has led to an increase in fertiliser prices.

“In addition, the cost of white rice packaging has also risen, adding more pressure on wholesalers. The government’s decision to raise the floor price of padi from RM1,300 to RM1,500, while keeping the price of local white rice at RM2.60 per kg, has further increased the burden on wholesalers.

“Fortunately, this time we see the (Agriculture and Food Secu­rity) Ministry stepping in to help adjust the padi sector,” Lim added.

Another rice wholesaler said about 13 wholesalers attended a meeting with the ministry about the subsidies on Monday.

“The ministry will implement a tracking system and provide us with tags to attach to 10kg packa­ges. This way, B40 households can buy the rice,” he said.

“We are willing to cooperate with the government for six months to see if this measure is effective. We hope the government can find an even better solution in the interim.

“We are not making any profits from the special 10kg packets. We are simply supporting the government’s efforts to ensure that those who truly need it can benefit.

“Right now, we are buying padi from farmers at RM1,500, and with packaging and staff wages, maintaining a price of RM26 per 10kg is extremely difficult.

“We hope the ministry can commit to clearing the subsidy payments every month. Other­wise, where will we find the money to keep operations going?” the rice wholesaler asked.

Another rice miller said the ministry stated that there would be 40,000 tonnes of local white rice available each month, which translates to 400,000 packets of 10kg rice for B40 households.

“This should be enough to meet their needs but we hope the government will enforce strict regulations to ensure the rice reaches only the B40 households and is not diverted for commercial use,” he stressed.

They were responding to the announcement of a government subsidy on local white rice for the poor.

Agriculture and Food Security Ministry Deputy Secretary-Gene­ral Datuk Badrul Hisham Mohd, who is padi and rice regulatory director-general, stated that from March 1 to Aug 31, a total of 2.4 million bags of 10kg of subsidised local white rice, priced at RM26 per bag, would be available across Peninsular Malaysia.

Malaysia Padi Farmers Brother­hood Association (PeSawah) chairman Abdul Rashid Yob, who represents the padi farmer associations, was concerned about what would happen next.

“After six months, then what? The price of the padi is still low. How long will the government continue subsidising?” he asked.

“The 2.4 million bags are merely 34% of the local demand. It is the millers who get the subsidies and the incentive – there is no fairness.

“Who are these millers? Are they the small millers or the giants who are already raking in profits? The government should instead be looking at how to lower the production costs, not merely subsidise.

“Look at the prices of padi seeds and floor price of padi sold to millers,” said Abdul Rashid.

A padi farmer from Kelantan, who only wanted to be known as Pak Nya, also questioned the rationale behind spending RM150mil in subsidies for millers.

“We, the padi farmers, are the poor and hardcore poor.

“If you want to help the poor, give us the subsidies so that we can absorb rising costs,” said the farmer from Pasir Putih.

For the past two years, subsidised local white rice has remain­ed scarce, despite the government’s ongoing efforts to reform the rice industry.

Local white rice is a controlled essential food item, whereas imported rice is not.

The cost of production has increased for local white rice production.