Area
Malaysia
Commodity Group
Rice
Commodity
All
Date
23/10/2015
Policy Category
Production
Policy Instrument
Production support
Description
Announced 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.
Notes
Exchange rate as of 1 December 2015.
