Will padi farmers receive RM1,700 per tonne despite price drops?

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Padi Farmers Will Continue to Receive RM1,700 Per Tonne

Padi farmers will continue to receive a total of RM1,700 per tonne for their padi, even if millers lower their purchase price to the floor of RM1,200 per tonne. This is ensured by the government's ongoing Padi Price Subsidy Scheme, which provides an additional RM500 per tonne. This mechanism has been in place to guarantee a minimum income for farmers.
Subsidy Scheme Remains in Effect

The government has confirmed the continuation of the Padi Price Subsidy Scheme, which allocates RM500 per tonne to padi farmers. This subsidy is crucial for maintaining the farmers' income at the RM1,700 per tonne level, regardless of the price offered by padi millers. The scheme aims to provide a financial safety net for those cultivating rice.
Floor Price Established in 2014

A floor price for padi purchases has been set at RM1,200 per tonne since 2014. This established minimum price dictates the lowest amount millers can offer for padi. While millers are permitted to set their own purchase prices, these must not fall below this RM1,200 per tonne threshold.
Guaranteed Income Level

The combination of the millers' purchase price and the government subsidy ensures that farmers receive a consistent RM1,700 per tonne. Even in scenarios where millers set the purchase price at the minimum floor of RM1,200 per tonne, the RM500 per tonne subsidy from the government bridges the gap, guaranteeing the intended income for the farmers.

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Will padi farmers receive RM1,700 per tonne despite price drops?

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