KUALA LUMPUR – The proposal to introduce the Malaysia Madani White Rice as the sole category of local rice is illogical if issues surrounding pricing controls for rice and padi are not resolved, the chairman of the Muda Agricultural Development Authority (Mada) said.
Datuk Ismail Salleh said this is because the price of imported rice fluctuates, while another problem stems from the common practice at factory level to mix imported rice with local rice when it is packed for retail.
“It is not logical to abolish other categories of rice and introduce only one category, as the price of rice is linked to the price of padi,” he told Scoop.
“Through sampling of rice taken by Mardi (Malaysian Agricultural Research and Development Institute), it was also found that everything is mixed.
“There is no factory that does not mix rice, 70% local rice and 30% imported rice are mixed and sold as as local white rice (SST) for RM26 per 10kg in the market,” Ismail said.
The ceiling price for rice is currently RM2.60 per kg or RM26 for 10kg.
However, the proposed Madani Malaysia White Rice will be sold at RM30 per 10kg, as announced recently by Bukit Gantang MP Datuk Syed Abu Hussin Hafiz Syed Abdul Fasal who heads the task force of food under the National Cost of Living Action Council (Naccol).
Ismail said the ceiling price of RM2.60 per kg is linked to the floor price of rice which is currently RM1,300 per metric tonne. This was raised from RM1,200 per metric tonne as part of Budget 2024.
At the current floor price, he said factories could still make a small profit by selling at RM2.60 per kg, “but the factory does not want to do that”.
Because of this, Ismail said Syed Abu Hussin’s proposal for a single category of rice can potentially overcome the issue of manipulation and mixing of rice at the factory level.
“However, it is only one of the solutions.
“In my opinion, the separation of local rice and imported rice still needs to happen but with controls (in place),” he added.
“For now, what is important is to stabilise the price of rice first, and then plan for the future if you want to float the price.
“We already have the Main Database System (Padu) to identify genuinely needy people affected people who need subsidies and who need rice at a lower price.
“I think there are many ways to solve this issue, but we have to take into account the price of rice for farmers, while also ensuring manufacturers can make a profit, and that people are not burdened with too high prices,” he said.
Two days ago, Syed Abu Hussin announced the Malaysia Madani White Rice category that would take effect on March 1. Since his statement, confusion has reigned over the higher pricing and the lack of details.
Its pricing at RM30 per 10kg would place it higher than the current ceiling price of RM2.60 per kg, while Syed Abu Hussin’s had also said the new category would see existing the categories of SST for local rice and SSI for imported rice, abolished.
This has led to some consumers asking if they would still be able to buy other brands of imported rice.
On pricing, Ismail said that white rice could be sold at RM30 per 10kg if the floor price of rice was raised to RM1,400 per metric tonne.
He told Scoop he personally agreed the price of rice should be higher than it is now, but added that pricing still needs to be controlled using the Rice Control Act 1994 (Act 522).
“If the price is RM3 per kg, then there must be controls on the floor rate by raising it to RM1,400.
“With controls, the price of rice will not rise and will be followed by pricing for padi seeds, which can be controlled at between RM1,500 to RM1,600 per metric tonne, so that seeds can still be sold in a 20kg bag for RM45,” Ismail said.
After Syed Abu Hussin’s announcement, Scoop learnt that it was still only a proposal by Naccol and not an official policy yet. Agriculture and Food Security Minister Datuk Seri Mohamad Sabu is expected to issue a statement on the matter upon his return from an overseas trip next Friday.
Earlier today, Prime Minister Datuk Seri Anwar Ibrahim said Naccol will meet to finalise rice price controls next week, in response to confusion over the Madani rice proposal. – February 16, 2024
