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Paddy Price Hike Promise Unrealistic, Could Double Rice Costs: Industry
🇲🇾 Malaysia /Economy & Trade

Paddy Price Hike Promise Unrealistic, Could Double Rice Costs: Industry

From Utusan Malaysia · (9m ago) Malay Critical tone

Translated from Malay, summarized and contextualized by DistantNews.

TLDR

  • A Malaysian coalition's promise to raise the minimum paddy purchase price to RM3,000 per metric ton is deemed unrealistic by industry players.
  • The chairman of the Malaysian Rice Manufacturers Association stated that implementing this promise could cause rice prices to surge to RM60 per 10 kilograms.
  • He warned that excessively high rice prices would negatively impact consumers.

The Perikatan Nasional (PN) coalition's electoral promise to increase the minimum paddy purchase price to RM3,000 per metric ton is being met with strong skepticism from industry stakeholders. Marzukhi Othman, chairman of the Malaysian Rice Manufacturers Association, has publicly stated that this promise is not only unrealistic but also nonsensical.

Othman elaborated that if such a policy were implemented, it could lead to a drastic increase in rice prices, potentially reaching RM60 for a 10-kilogram bag. This would place an unbearable burden on consumers, especially in a country where rice is a staple food. The association is concerned that such populist promises, made without considering the economic realities, could destabilize the market and harm the very people they claim to help.

The promise is unrealistic and nonsensical.

— Marzukhi OthmanChairman of the Malaysian Rice Manufacturers Association, commenting on the Perikatan Nasional coalition's pledge.

From the perspective of Malaysian rice manufacturers and distributors, this promise appears to be a typical election ploy designed to garner votes without a viable plan for execution. The focus should be on sustainable agricultural policies that support farmers while ensuring affordable food prices for the public, rather than making unsustainable pledges that could have severe economic repercussions.

If implemented, it could cause rice prices to surge up to RM60 for 10 kilograms.

— Marzukhi OthmanExplaining the potential economic impact of the proposed paddy price increase.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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