Kuala lumpur: The Ministry of Agriculture and Food Security (KPKM) is conducting a study to examine the structure of domestic rice production following a drop in imported rice prices, the Dewan Rakyat was told today. Minister Datuk Seri Mohamad Sabu said the exercise was aimed at ensuring the welfare of padi farmers while safeguarding the interests of consumers.

According to BERNAMA News Agency, imported rice, not only from the United States but also from other countries, is currently quite cheap, prompting the need to structure the price of domestic rice. A special study is being conducted, which will be tabled soon. The minister emphasized that any changes to the rice structure must ensure that the low-income group, or B40, continues to have access to rice at a reasonable price.

During the six-month study, it was found that 15 percent of the population needs rice priced at about RM26 for 10 kilogrammes. Therefore, the interests of this group will not be overlooked in any structural changes. Regarding the padi purchase floor price, which was raised from RM1,300 to RM1,500 per tonne starting in February last year, Mohamad stated that the government has agreed to keep the rate unchanged for now, despite requests for a further increase.

He assured that monitoring of padi production costs and market conditions would continue, and any significant changes affecting farmers' welfare would be considered in the future. The government emphasizes that setting padi floor prices must be done carefully and in a balanced manner, considering the entire padi and rice industry chain.

Among the factors considered are the structure of padi production costs and its implication on rice production costs, as well as its impact on consumer rice prices and international rice market price movements. Mohamad warned that an excessively sudden increase in padi floor prices without appropriate support could trigger a chain effect, burdening consumers.

To support padi farmers without relying solely on floor prices, the government has provided subsidies and incentives totaling RM2.62 billion this year. The current incentive for farmers is about RM4,000 per hectare, a high subsidy compared with other ASEAN countries, making Malaysia's subsidies among the highest.