KUALA LUMPUR: Removing the price cap for local white rice (SST) will incentivise paddy farmers to increase output and lead to a more robust domestic supply of rice, says Mydin.
Its managing director Datuk Ameer Ali Mydin said one of the key issues exacerbating the rice supply is the ceiling price imposed on local rice production, which has yet to see a review since 2008.
In an interview on NST's Beyond the Headlines, Ameer said Malaysian farmers are paid significantly less than the market price, which ultimately impacts their livelihoods.
"Last week alone, the cost of (local) paddy was about RM1,750 (per metric tonne), this when converted into rice package, the price per 10kg is between RM36 - RM37.
"Why are we depriving our (paddy) farmers by insisting on the RM1,300 (per metric tonne) when the market rate has increased?" he said.
"If we remove price control, the local white rice of RM26 will go up, further attuning it to the actual market rate and making it competitive," he added.
While he acknowledged the potential impact on consumers, especially those in the B40 and M40 groups, targeted subsidies by the government to affected households could mitigate the effects.
"Hence, the government must have the political will to address the rice crisis with the right narrative."
By clearly explaining the reasons behind any changes in subsidies or pricing, he said, would help the public understand and support the necessary measures to tackle the crisis more effectively.
The existing market dynamics, he said, are made more intricate, when factoring the imported white rice (SSI) controlled by Padiberas Nasional Berhad (Bernas), which is priced at RM32 (per 10kg) into consideration.
Earlier this week, Bernas welcomed Prime Minister Datuk Seri Anwar Ibrahim's suggestion to examine and refine the Madani white rice scheme.
In a statement, it stressed the importance of conducting a comprehensive engagement session involving all relevant parties before making any decisions.
Bernas said it will examine international rice market conditions, operating costs, and foreign exchange rates to assist the government's efforts to offer lower-priced imported white rice.
Concerns have been raised over the poor coordination within the government regarding the Malaysia Madani white rice.
Analysts in response have warned that if the matter is not addressed thoroughly, it could have (long-term) effects on governance and the economy in the near future.
"The final retail price for SSI can reach as high as RM38 - RM42 due to various costs incurred from milling to distribution," said Ameer.
For the Madani white rice to work, the government must consider the considerations behind both local and imported rice.
Ameer, who is also a National Action Council on Cost of Living (NACCOL) member, said the primary concern above all is availability.
He pointed out two critical aspects that also contribute to Malaysia's rice plight; (i) the impact of rising global prices and; (ii) the challenge of standardising rice prices particularly for imported varieties.
He argued that the removal of price control will help stimulate domestic production and improve food security given the multiple factors contributing to the crisis.
Follow the full discussion on the latest episode of Beyond the Headlines. Watch on NST Online's YouTube channel…