MADA Plans Padi Processing Factory to Enhance Farmer Earnings

Alor setar: The Muda Agricultural Development Authority (MADA) will build its own padi processing factory as part of efforts to support farmers in its areas, said chairman Datuk Dr Ismail Salleh. He said the initiative aimed to ensure that padi farmers in the MADA areas could earn better returns for their hard work in cultivating the crop.

According to BERNAMA News Agency, Dr Ismail highlighted the financial difficulties faced by padi farmers due to rising production costs such as fertilisers, pesticides, and seeds, coupled with low padi floor prices. He noted that while padi farmers do not earn much, others are profiting significantly from the farmers' efforts. This situation has led to dissatisfaction among the farmers, who have raised banners annually to express their concerns.

Dr Ismail announced that the padi processing factory project has received government approval and is expected to be operational within four to five years. The factory will have the capacity to process up to 50,000 tonnes of padi per year, representing about five percent of the total padi production in the MADA areas. He expressed hope that in the future, MADA could potentially control up to 30 percent of padi production, ensuring all revenue flows directly to the farmers.

Upon the completion of the factory, the harvested padi would be sold to the Area Farmers' Organisation (PPK) before being processed at the MADA-owned facility. This strategy aims to effectively control the padi industry chain, linking padi prices earned by farmers to the price of local white rice determined by the government.