Rice Security Policy - RM725mil rice subsidy

The Government will spend at least RM725mil to subsidise the import of 500,000 tonnes of rice.

The move would help maintain the retail price of rice and alleviate the burden of consumers.

The decision was made by the Cabinet Committee on Inflation yesterday. The committee also decided to implement five action plans to counter the rising price of rice and padi in the country.

Ceiling price for Super Special Tempatan 5% (with 5% content of broken grains), and Super Special Tempatan 10% at RM2.80 and RM2.70 respectively effective June 1, 2008.

Super Tempatan 15%, a controlled-price item costing between RM1.65 and RM1.80 per kilo. The transfer of padi between states would be allowed and conducted in stages.

The guaranteed minimum price (GMP) increased from RM650 per tonne to RM750 per tonne.

There is no shortage (of locally-produced rice) but we are importing to make sure we have a stockpile. About 70% of our rice is locally produced. The move to allow inter-state transportation of rice was to further free up the market and get rid of what was an antiquated system.