KUALA LUMPUR (Oct 20): The Ministry of Agriculture and Food Security has announced a new ceiling price for certified paddy seeds (BPS), effective immediately.

The new ceiling price for certified paddy seeds throughout Peninsular Malaysia will increase to RM41 from RM31 per 20kg sack at the wholesale level. At the retail level, it will rise to RM45 from RM35 per 20kg sack.

In a statement released on Friday, the ministry expressed concern over farmers' complaints in the field. These complaints were related to difficulties in obtaining certified paddy seeds in the market, and the escalating cost of these seeds, which have reached up to RM50 per 20kg sack.

"Following the government's decision to increase the floor price of paddy purchases from RM1,200 per metric ton to RM1,300 per metric ton, the ministry anticipates that this will increase the cost of paddy seeds, affecting programmes like the Certified Paddy Seed Incentive Programme. As a result, these seeds can't be sold at the current maximum price of RM35 per 20kg sack." said the ministry.

Taking various factors into account, the ministry has decided to adjust the ceiling price. This price adjustment will not involve any financial implications for the government, and will not change the existing structure of BPS production, supply, and distribution, which includes 12 BPS-producing companies, 13 wholesale companies, and 456 retailers nationwide.

"Through this adjustment to the price of certified paddy seeds, the government aims to promote the adoption of high-quality and disease-resistant certified paddy seeds among rice farmers, while discouraging the use of illegal paddy seeds or 'white package' seeds in the market.

“Ensuring the availability of reasonably priced seeds for paddy farmers is the government's primary focus to maintain the balance of the country's rice and paddy industry ecosystem in the long term," the ministry added.

During the Budget 2024 presentation last Friday, Anwar, who also serves as the finance minister, announced that the federal government would raise the paddy floor price to RM1,300 per metric ton to support farmers.

Additionally, approximately RM2.6 billion in subsidies and incentives will be allocated to paddy farmers and fishermen.