MALAYSIAN rice farmers are appealing for an increase in the Skim Subsidi Harga Padi (SSHP) from RM500 to RM800 per tonne, citing escalating production costs that threaten their livelihoods, according to Abdul Rashid Yob, chairman of the Malaysian Padi Farmers Brotherhood Organisation (PeSAWAH).
He said farmers are increasingly squeezed as input costs, wages, and operational expenses have surged since the government targeted diesel subsidies last year.
“The increase in subsidy is the most immediate and practical step to ensure farmers can continue planting seasons without incurring continual losses,” he said.
Abdul Rashid noted that while the government has raised the floor price of paddy from RM1,300 to RM1,500, production costs have also jumped.
“After the subsidy targeting, farmers bear almost a 55 percent increase in costs. Currently, producing one kilogram of paddy costs RM1.50, meaning a tonne requires RM1,500. When the government buys at RM1,500 plus RM500 subsidy, farmers only receive RM2,000. Net profit is just RM500 — how can they sustain their families?” he explained.
He emphasised that the proposed subsidy increase would have minimal impact on other stakeholders such as manufacturers or wholesalers, as it is a targeted government measure aimed at safeguarding farmers’ welfare.
Abdul Rashid also highlighted the impact of erratic weather, heavy rains, and floods, which damage large areas of paddy fields and directly reduce farmers’ incomes. For instance, recent flooding in Kubang Pasu submerged over 10,000 hectares of farmland, causing losses estimated at RM5,000 to RM6,000 per hectare.
“The capital for planting is gone, but the fields are ruined. Farmers have to start over — where will they get the money?” he said.
He further criticised the stagnant local rice price of RM2.60 per kilogram, unchanged for 18 years, despite rising production costs. “The fixed price of rice prevents paddy prices from increasing. Manufacturers calculate their own costs, and in the end, it is the farmers who suffer,” he said.
Abdul Rashid also urged the government to review the import of rice to ensure it does not exceed 30 percent of the local market and to control the entry of low-quality rice, noting that imported rice is increasingly priced close to or below local rice, undermining the domestic industry.
“Imported rice should only enter the market when necessary, not to suppress local production. If this continues, sustaining domestic paddy production will be extremely difficult,” he warned.
He added that several government aid initiatives remain unimplemented, including ploughing incentives delayed for three seasons and a RM50-per-hectare harvesting incentive, creating additional pressure on farmers. “These delays add further strain to rice farmers,” he said. - December 6, 2025
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