MINIMUM PADI PRICE FIXED AT US$228.40 PER TONNE

ALOR STAR (Malaysia), Jan 5 (Bernama) -- The Muda Agriculture Development
Authority (Mada) has fixed the minimum padi price for season 1/2009 at US$288.40
(RM1,000) per tonne compared to last season's minimum price of RM950 per tonne.

Its Chairman, Mahdzir Khalid said the slight increase was also
agreed to by the farmers and manufacturers during their meeting Sunday.

"However, the minimum padi price was meant only for padi produced in Mada's
97,000ha area and based on the regional padi price such as in Thailand, Vietnam
and Myanmar," he told reporters after attending the Padi and Rice Industry
Consultative Council meeting, at the Mada headquarters here.

Also present were the representatives from Syarikat Padiberas Nasional Bhd
(Bernas) and the Padi and Rice Regulatory Division.

Mahdzir said apart from discussing the minimum padi price, the meeting also
touched on padi-related issues like the government programme, subsidy, quota,
and purchasing licence.

Meanwhile, Mahdzir said Mada, with the cooperation of the Northern
Corridor Implementation Authority (NCIA), had started the RM34 million (US$9.8
million) prject to pave the farm roads totalling 129km in the four northern
regions.

He said the first and second phases of the project had started
simultaneously last week and were expected to be completed in 40 weeks.

"This is the Federal government's project through NCIA, with Mada being
responsible for the technical aspects. The project would only involve roads in
Mada areas which are not paved," he added.

-- BERNAMA