Prime Minister Datuk Seri Anwar said that the government will announce the minimum purchase price of rice and additional subsidies next week to balance the price of white rice and avoid impacting consumers.
He stated that the Minister of Agriculture and Food Security, Datuk Seri Mohamad Sabu, will present a work report to explain and announce the adjusted minimum purchase price.
“However, do not forget that increasing the minimum purchase price will lead to a rise in consumer rice prices. Therefore, how do we balance this? After increasing the farmers' (purchase) price, the consumer's (white rice) price will rise, and we do not want consumers to face a price hike.
“Therefore, I have discussed with the Ministry of Finance to let the government bear the subsidies so that the impact on the local white rice market price for consumers will not rise. The government will bear approximately RM150 million for a period of 6 months, and a decision will be made shortly.”
He answered this during the Ministerial Question Session in response to the question raised by PN Bera MP Datuk Seri Ronald Kiandee.
Ronald Kiandee asked the government to explain how they will respond to farmers' demands to set the purchase price at RM1,800 per ton.
In 2023, the government had already increased the purchase price, which had been maintained since 2014, from RM1,200 per ton to RM1,300 per ton.
However, the Malaysian Farmers' Friend Association (PeSAWAH) earlier urged the government to consider the organization's suggestions to increase the minimum purchase price from the current RM1,300 per ton to RM1,800 per ton.
As Finance Minister, Anwar said he understands the issue and has reviewed the memorandum submitted to the Prime Minister's Office by the relevant organization and has consulted with the Ministry of Agriculture.
However, he criticized the opposition for trying to negate the government's efforts to help farmers raise the rice purchase price, pointing out that during the opposition's rule, they stood by and did nothing.
“There's no denial needed, this is a fact. You were shouting from a busload of people, but during your rule, the minimum purchase price was not increased; it was us who raised it.
“We cannot just support the consumers at the expense of the farmers, nor can we merely cater to the farmers (requests) by raising prices without considering the consumers, especially since there is a significant number of B40 group consumers.”
Do not rule out abuses affecting national rice production
In addition, in response to the question by Sungai Petani MP Mohamad Daud on whether the government has identified abuses in the rice sector, Prime Minister Anwar did not rule out that such abuses could be a factor affecting national rice production, and has instructed relevant authorities to investigate.
Kedah Chief Minister Datuk Seri Sanusi had earlier alleged that illegal groups were “switching” local white rice to imported white rice packaging, causing a shortage of local white rice in the market. He had repeatedly issued warnings on this matter, but government departments have denied it.
The Prime Minister also responded by saying that if there is evidence, authorities should be informed to take action.
“But the production of rice in Kedah, Perlis, Kelantan, and Terengganu is noticeably lower than that in Sekinchan.”
Nonetheless, the Prime Minister also thanked the Kedah State Government for their cooperation in land management and stated that the central government does not intend to increase the paddy field area; if production can be increased, the paddy field area can be reduced.