Should rice farmers receive matching grants for small mills?

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Farmers' Organisation Authority Proposes Matching Grants for Small-Scale Rice Mills to Address Local White Rice Shortage

The Farmers’ Organisation Authority (FOA) has proposed providing matching grants to rice farmers to enable them to acquire small-scale rice milling machines. This initiative is intended to help alleviate the current shortage of locally produced white rice by empowering farmers to process their own crops. Each milling unit is estimated to cost approximately RM5,000, and a single machine can yield 2.5 kilogrammes of quality rice per processing cycle.
Small-Scale Milling Capacity Enhancement

The proposed matching grant scheme aims to decentralise rice processing capabilities by allowing individual farmers or farmer groups to own and operate their own milling equipment. This direct ownership model is seen as a practical solution to bridge the gap between production and availability of local white rice. The cost-effectiveness of these small-scale machines, at around RM5,000 per unit, makes them an accessible investment for farmers when supported by grants.
Addressing Insufficient Certified Processing Capacity

Currently, the national capacity for processing certified rice seeds is significantly below demand. The sole certified rice mill located in Lahar Bubu, Penang, can process about 5,000 metric tons annually. However, this is insufficient for the 240,000 registered farmers who require an estimated 72,000 metric tons of processed rice each year. This disparity highlights the urgent need for expanded processing infrastructure.
Expansion of Certified Rice Milling Plants

In addition to the proposed small-scale mills, the FOA noted that three larger certified rice milling plants are in the process of becoming fully operational. These facilities, situated in Kubur Panjang, Kedah; Simpang Lima, Parit Buntar; and Sungai Burung, Selangor, are expected to contribute significantly to mitigating the local white rice shortage once they are running at full capacity. Their combined output will supplement the existing, limited processing capabilities.

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Should rice farmers receive matching grants for small mills?

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