ALOR STAR: Rice millers did not violate any regulations when they decided to mark down the padi purchasing price from RM1,700 per metric tonne to the floor price of RM1,200 set by the government.
However, Agriculture and Food Security deputy minister Chan Foong Hin said the ministry acknowledged grouses raised by padi farmers following the price revision and gave his assurance that the government was committed to address the issue.
Chan, nevertheless stressed that any adjustments on prices must align with the retail ceiling prices to prevent losses to millers and wholesalers.
"The reduction in padi purchase price follows the market trends and the floor price is indeed set at RM1,200 per metric tonne. Thus, if a miller or a wholesaler offers to buy at the floor price, we cannot say they are wrong.
"Previously, it had gone up to RM1,700, so the expectations (among farmers) are higher, right?" he questioned.
"We will monitor this situation and the ministry will have discussions. This is a matter that we will continue to address," he told reporters after leading an inspection at a rice miller in Pendang here.
On Sunday, it was reported that the Malaysian Padi Farmers Brotherhood Organisation (Pesawah) urged the government to intervene to push the padi purchase price back to RM 1,700 per metric tonne.
Its chairman Mohd Fuad Yaacob said the government should enforce a minimum purchase price of RM 1,500 per metric tonne to do justice to the farmers.
Commenting on proposals from certain quarters to raise Padi Price Subsidy Scheme (SSHP) rates, Chan explained that the government had recently increased it from RM360 per metric tonne to RM500 in August.
"So, I believe that in the near future, further increases won't be easy. We will explore other options that will satisfy the interest of all stakeholders in the industry," he added.
On Aug 8, Prime Minister Datuk Seri Anwar Ibrahim announced an increase in the price of padi subsidies from RM360 to RM500 per metric tonne beginning Aug 9.
Anwar, who is also Finance Minister, said the announcement should see padi farmers in the country earning RM1,700 per metric tonne of padi.