KUCHING: In light of the recent increase in imported white rice prices, Sarawak’s paddy planters are urged to continue cultivating paddy on their land rather than abandoning it or switching to other crops. This move is seen as an opportunity for them to boost their income.
Datuk Seri Dr Stephen Rundi Utom stressed the importance of seizing this opportunity. While the price hike in imported white rice may affect consumers, it presents a chance for paddy planters to enhance their earnings.
Dr Rundi, who is the Minister for Food Industry, Commodities and Regional Development, said the government is prioritising the modernisation of rice production to ensure food security and industry sustainability.
This includes promoting mechanisation and encouraging private sector participation through the SMART SBB (Sawah Berskala Besar) business model.
Furthermore, the government is committed to upgrading and rehabilitating deteriorating farm infrastructure related to irrigation and drainage.
“Currently, the federal government provides a price subsidy (output incentive) of RM500 per metric tonne for paddy.
“My ministry is proposing to both the federal and Sarawak governments to consider raising the total payment to paddy farmers for modern paddy varieties to RM2,000 per metric tonne by injecting more price subsidies.”
To make this incentive more accessible to paddy farmers, the government is encouraging them to plant modern paddy varieties with higher yields that are eligible for the price subsidy (output incentive) from the government.
Speaking to New Sarawak Tribune, Dr Rundi explained that rice prices are heavily dependent on global supply and demand. Many major rice-exporting countries have faced challenges such as excessive drought and floods, leading to poor harvests.
Consequently, countries like China, India, Vietnam, and Thailand have imposed export bans, suspensions, or reductions, contributing to increased rice prices in the world market.
“Last year, the rice market in Sarawak totalled about 250,000 metric tonnes, with 164,621 metric tonnes imported, valued at RM362mil.
“Sarawak primarily produces a traditional rice variety known as ‘specialty rice’, which retails for RM14 to RM20 per kg.”However, locally produced specialty rice is not sub
ject to the Padi and Rice Control Act 1994 (Act 522), which caps the price of local white rice at RM2.60 per kg in other regions.
Sarawak has around 78,000ha of cultivated paddy fields, yielding approximately 85,700 metric tonnes of rice last year. Most of this production came from wet paddy, with 20 per cent from hill paddy.
“The production yield remains low as the farmers have persistently planted low-yielding local paddy varieties over the years.
“Thus, we encourage more paddy planters to view the imported rice price hike as an opportunity to increase their production.”
Padiberas Nasional Bhd (Bernas) recently announced a 36 per cent increase in the price of imported white rice, from RM2,350 to RM3,200 per metric tonne, driven by factors such as declining rice harvests in exporting countries due to climate change, a weakening ringgit, and export bans by major rice exporters like India.
