Agriculture Ministry Reviews Rice Supply Mechanism Post-Subsidy Scheme

What's Happening?

The Agriculture and Food Security Ministry is set to reassess the supply mechanism for white rice following the conclusion of the local white rice subsidy scheme. The subsidy scheme, which ended on August 31, was initially introduced to ensure affordable rice prices for the public. The ministry plans to review the price adjustment of imported white rice, which is currently set at RM2,600 per metric tonne at Bernas warehouses. This review will also address rice-mixing practices in the market. The subsidy scheme, launched on March 1, aimed to deliver subsidies effectively to target groups and served as a transitional phase in Malaysia's rice supply system. During its implementation, demand for subsidized rice reached 75.8% of the target, indicating a preference for affordable rice options over subsidized ones.

Why It's Important?

The reassessment of the rice supply mechanism is crucial for maintaining market balance between local and imported rice, ensuring that the public continues to have access to affordable rice. The ministry's focus on effective subsidy targeting is intended to reach the intended groups without compromising the sustainability of Malaysia's rice industry. This move is significant for the country's food security, as it aims to prevent any form of leakage and ensure that no party exploits rice prices and supply. The collaboration with Bernas and other industry players is essential to safeguard the interests of consumers and maintain the quality of rice available to households.

What's Next?

The Agriculture and Food Security Ministry will continue to monitor rice supply closely and work with Bernas and other industry stakeholders to prevent exploitation of rice prices. The experience gained from the subsidy scheme will inform long-term strategies to maintain market balance and ensure effective subsidy targeting. The government is committed to ensuring that every household in Malaysia has access to affordable and quality white rice.