The government is considering raising the price limit for local white rice to help with the current supply shortage according to Agriculture and Food Security Minister Datuk Seri Mohamad Sabu.
Since 2008, the price ceiling has been RM2.60 per kilogram, ensuring that rice remains affordable for the public.
However, the situation has changed significantly where at that time the cost of paddy was RM900 a tonne, while now it has increased to RM1,300 a tonne.
Mohamad Sabu questioned whether it is still fair to keep the price of rice unchanged when the cost of production has increased so much.
Based on industry feedback, the current price cap is no longer competitive. As a result, the Ministry believes that the price ceiling review is a reasonable step.
The government is in discussions with various stakeholders and is also awaiting a report from the Malaysian Competition Commission on rice-related cartel activities.
This report will guide further discussions to make the rice and paddy industry fairer.
In addition, the government plans to standardize rice prices in all states, with a final study on new price adjustments expected soon.
This effort aims to stabilize the price of rice and give better income to farmers.
