ALOR STAR: Following the diesel subsidy rationalisation effective yesterday, the Malaysian Padi Farmers Brotherhood Organisation (Pesawah) is urging the government to increase the ceiling price of local white rice.
Its executive council member Abdul Rashid Yob said the decision on this matter, to be finalised in October, must establish a fair price for both consumers and farmers.
Rashid stressed that padi farmers have long been advocating for an increase in the price of local white rice, which has remained at RM2.60 per kilogramme (kg) since 2008.
"We need an ideal price adjustment that benefits everyone. Currently, we are struggling with the cost of diesel. The government's targeted subsidy mechanisms and conditions have impacted many who rely on this subsidy.
"We don't want to be further burdened by the issue of local white rice, which will significantly affect farmers and end consumers. Rising costs will ultimately fall on the farmers, reducing their already modest income," he said when contacted today.
Rashid said that a fair increase in the price of local white rice would alleviate many of the issues plaguing the supply of white rice in the country over the past year.
He also stressed that padi farmers are currently under immense pressure due to various issues impacting padi cultivation.
"We have suffered a lot due to increased costs, climate change and the recent subsidy cut. If this continues, we might face a food crisis as farmers may abandon their fields," he added.
Meanwhile, the Farmer's Action Committee in Muda Agriculture Development Authority (Mada) Areas chairman Che Ani Mat Zain said farmers need to be prepared to absorb the increased costs of padi cultivation following the diesel subsidy cuts.
"The minimum increase in machinery rental costs is expected to be 20 per cent compared to the current rates with the diesel subsidy cuts. All padi machinery and transportation use diesel, and the increased costs will certainly affect their usage.
"The diesel consumption for padi harvesters is RM25 to RM35 per relong (approximately 0.29 hectares), while tractors use around RM25 to RM30 for the same area. Hence, the increase in costs will need to be borne by the farmers," he said.
He added that trucks transporting padi to mills incur fuel costs of RM25 to RM35 per tonne, depending on the distance.
"These calculations do not include other expenses for each machine, such as RM8,000 per season for the maintenance and repair of padi harvesters, and about RM2,000 per season for tractors. Both machines are operated by drivers and assistants who earn RM25 per 0.29 hectares, with their food and drink costs totaling RM1,500 per season," he added.
Hence, Che Ani stressed that the government should take bold steps to increase the ceiling price of local white rice.
However, he said that the price hike should be carefully calculated to ensure a win-win situation for consumers, farmers, and rice millers.
Yesterday, Agriculture Minister Datuk Seri Mohamad Sabu said discussions, involving several ministries, on the change of the ceiling price of local white rice were ongoing and will be finalised before October.
This came a day after Finance Minister II Datuk Seri Amir Hamzah announced that diesel subsidies for certain groups in Peninsular Malaysia had been discontinued starting June 10.
This, Amir said, would set the price of diesel at RM3.35 per litre according to the automated pricing mechanism, up from the current price of about RM2.15 per litre.
