MALAYSIA cannot be 70% self-sufficient in rice as is being claimed, when rice fields have been converted to other uses, we are host to about 2 million foreign workers and our population is rising. The actual percentage is probably much lower, but this was not reflected in the local markets in the past because smuggled rice from Thailand made up for most of the shortfall. High prices in Thailand having put an end to smuggling has now resulted in a shortage in the local market even though we are supposed to import 30% of our needs. The authorities should accurately estimate local rice production.

The government should be cautious about going for 100% self-sufficiency in rice as the present high prices and apparent shortage in the international markets may be temporary. Farmers around the world will likely increase production to take advantage of the high prices and within a span of two or three rice growing cycles there may be an oversupply, causing prices to drop. Consequently the government may end up having to pay out more in subsidies to support local farmers then is now the case if it went for 100% self sufficiency.

Instead of opening up new padi land in Sarawak and elsewhere the government should rehabilitate abandoned and underutilised land as it can be done quickly and cheaply.

In the long-term, the solution is to substantially increase the income of local rice farmers by getting farmers to form small agro companies and combine land holdings to lower production costs and to diversify into other areas like raising chicken to raise their income and better cope with price instability. They should also be provided with marketing and managerial skills and encouraged to link directly to consumers for higher prices.

P. Kesavan
Taiping

Source: The Sun – May 12, 2008