THERE is a pressing need for agricultural policy reforms as the sector is facing a huge crisis, said economist Prof Jomo Kwame Sundaram.  

“About 90% of the country’s agricultural land comprises of palm oil and rubber and there a little bit of cocoa, while only a small portion consists of edible crops,” he said at a seminar on national poverty at Parliament today.

Padi only takes up about 10-12% of the total agricultural land in the country. 

The member of the Council of Eminent Persons said padi farmers belong to the hardcore poor category although they are beneficiaries of government subsidies. 

Although the government subsidises more than 60% of padi farming, the supply of fertilisers and other components needed for farming comes from large multinational corporations.  

“This is not a good stimulus for the planters of the crop,” he said. 

“The prices of the items are set at a price higher than global market prices to stimulate the sector.”

This problem has been in existence since the colonial era and ongoing for more than a century. 

In addition, there are laws governing Malay reserve land which earmarks the particular land only for padi farming. 

“Farmers cannot plant other crops.

“This is a conspiracy to bind smallholders to keep planting padi.”

The former United Nations assistant secretary-general for economic development said food procurement policy can also help in this regard.

For example, this can be done through a school lunch programme which sources food from smallholders instead of corporations.

“There are other ways. The Health Ministry has done a trial in Johor by supplying vitamins and other supplements in school with a budget of RM2.40, which is 20% lower than the prices in Johor. Johor is the most expensive state in Malaysia because of the effect from Singapore,” he said. 

“We can achieve this through proper planning.”

However, this will involve joint effort between ministries, such as Education and Agricultural and Agro-based Industry.

He said it is important to dismantle barriers between ministries which refuse to work together, adding that there would not be a big change to the economy, if business goes on as usual.  – September 24, 2019.