Agriculture and food security minister Mohamad Sabu announced the adjustment in the Dewan Rakyat today.

“This takes into account the rising costs of wages and agricultural input such as fertilisers and pesticides, as well as the impact on rice production costs, which in turn affects market prices,” he said during his explanation session.

The floor price was adjusted to RM1,300 in 2024, after being fixed for over a decade at RM1,200.

Last month, padi farmers group Pertubuhan Persaudaraan Pesawah Malaysia urged Putrajaya to raise the floor price of padi to RM1,800 per metric tonne, citing a 5% increase in operational costs.

Mohamad also announced that his ministry is finalising discussions with the domestic trade and cost of living ministry and the finance ministry to enable service supervisors in the industry to qualify for diesel subsidy aid under the Budi Madani programme.

Under the Budi Madani programme, diesel subsidy aid is currently provided to certain vehicle owners, including agriculture and commodity smallholders in Peninsular Malaysia.