AreaMalaysia

Commodity GroupRice

CommodityAll

Date23/10/2015

Policy CategoryProduction

Policy InstrumentProduction support

DescriptionAnnounced that, effective 1 January 2016, assistance provided to producers under the Paddy Price Subsidy Scheme would be raised from MYR 248.1 (USD 58) to MYR 300 (USD 70) per tonne. The initiative forms part of the Government\'s 2016 budget, which will see additional funds destined to irrigation and drainage infrastructure upgrades, tax incentives to encourage investment in food production, the provision of fertilizer subsidies for hill paddies over 76 000 hectares in Sabah and Sarawak and the launch of a grading scheme to move towards a standardised paddy producer price of RM 1 200 (USD 281) per tonne. Subsequent official statements indicated that incentives to raise yields through outlays linked to productivity gains achieved over a season were to be abolished due to the scheme\'s limited success.

NotesExchange rate as of 1 December 2015.