PUTRAJAYA: The Agriculture and Food Security Ministry (KPKM) is set to reform the padi and rice industry, focusing on padi pricing, local white rice production, separation of powers and enforcement measures.
The ministry aims to improve the quality of life for over 211,000 padi farmers who rely on the rice industry as their main source of income while boosting the country’s economy.
Its deputy secretary-general (Development) Datuk Badrul Hisham Mohd said the ministry, in collaboration with experts, will conduct studies to determine whether the current padi price is sustainable and competitive in relation to production costs.
“For instance, is the price of RM26 for 10kg of local white rice appropriate for us to maintain?” he said.
Badrul Hisham also said the ministry would introduce a new regulation prohibiting the mixing of local white rice with imported white rice to prevent manipulation by certain parties.
“We also plan to ensure a clear separation of powers between the Padi Industry Development Division, Padi and Rice Regulatory Division (KPB) and the ministry’s representative in Padiberas Nasional Bhd, to prevent conflict of interest that may lead to negative perceptions by irresponsible people,” he told reporters at Wisma Tani’s Business Development Centre here.
Additionally, the ministry has proposed consolidating 2,030 enforcement personnel from seven departments and agencies under KPKM, which currently operate under 14 different laws, into a new entity.
This is inline with the Prime Minister approach of reforming the government public service by consolidating the overlapping function to optimise resources.
These include KPB, the Malaysian Quarantine and Inspection Services Department, the Agriculture department, Veterinary Services department, Fisheries department, the Federal Agricultural Marketing Authority and the Fisheries Development Authority of Malaysia.
“KPB currently has 160 personnel and their strength is not enough as they have to handle 15 responsibilities.
“This bold idea of merging enforcement entities has received positive responses and will strengthen enforcement to benefit both the ministry and the agro-food industry,” he explained.
Administrative reforms involving the Farmers’ Organisation Authority and the National Farmers Organisation will also be announced soon.
He shared that KPKM Minister Datuk Seri Mohamad Sabu’s focus on reforming the padi and rice sector is crucial, as rice is a staple food for 35 million Malaysians.
Malaysia spends RM3bil annually on rice imports and between RM1.8bil and RM2.4bil in subsidies to support padi production.
Currently, about 60% of padi production costs are subsidised by the government, with each hectare receiving around RM4,000 in subsidies. There are also 11 forms of assistance available to benefit farmers.
“The padi and rice sector has an economic value of at least RM9bil. If optimised, this could grow to RM12bil,” he said, adding that this investment is worthwhile.
He also pointed out that the ministry has found potential issues with wealth distribution among farmers, as many remain poor and heavily dependent on subsidies.
The reform seeks to ensure that all levels of the padi and rice value chain, from farmers to wholesalers and retailers, benefit fairly in a win-win situation.
“We want to ensure that this industry is sustainable and benefits the rakyat and that we can move the country forward,” he said.
Looking ahead, Badrul Hisham shared the ministry’s ambitious vision to raise Malaysia’s self-sufficiency level for local white rice production from 56.2% to 80% by 2035.
This would require an investment of RM3.75bil over 10 years, with RM375mil allocated annually for development.
The funds would be used such as to improve infrastructure, modernise machinery and enhance irrigation systems to optimise agricultural water usage.
“We have been directed to have a follow-up discussion with the Economy and Finance Ministry to specify the need for this development allocation and to assure them that this is a significant effort that can give us an advantage.”
Currently, Malaysia imports rice from countries such as Vietnam, India, Thailand and Pakistan.
However, Badrul Hisham is optimistic that these reforms will improve local white rice production.
With 520,000ha of padi fields in Malaysia producing an average of 4.5 tonnes per hectare, the ministry aims to increase this yield through innovation and efficiency.
Under the PINTAR programme, he explained that the ministry will focus on six key elements - institutions, capacity, innovation, technology, collaboration and communication.
“These six elements will be game-changers. The farmers need to understand that the government is working to safeguard their interests,” he said.
He also stressed the importance of initiatives such as paddy seeding programmes, the upskilling and reskilling of officers, research and empowering farmers.
“For example, the ageing farmer population poses challenges for adopting digital and IR 4.0 or 5.0 technologies. We need time and effort to modernise this sector,” he highlighted.
As part of its forward-looking strategy, KPKM is implementing the “30 by 30” programme, aiming for 30% of the workforce in the food industry to be under 30 years old by 2030.
The ministry is also introducing a star-rating system to recognise farmers based on their knowledge, technology use and expertise to become productive farmers.
“Our research shows that 85% of farmers are still at the third-star level, meaning they are ordinary farmers. We want to push them forward to improve productivity,” he added.
Badrul Hisham concluded by emphasising that achieving food security requires a collective effort, with clear strategies, an ideal padi rice model, action plans and communication needed to meet the nation’s targets.
