Production for rice is limited by land availability, high production costs, and availability of labor.

Rice S&D

Rice, Milled

2013/2014

2014/2015

2015/2016

Market Year Begin: Jan 2013

Market Year Begin: Jan 2014

Market Year Begin: Jan 2015

USDA Official

New Post

USDA Official

New Post

USDA Official

New Post

Area Harvested

690

690

688

688

690

Beginning Stocks

588

588

668

453

442

Milled Production

1,755

1,755

1,800

1,800

1,810

Rough Production

2,700

2,700

2,769

2,769

2,785

Milling Rate (.9999)

6,500

6,500

6,500

6,500

6,500

MY Imports

1,100

885

1,100

989

1,000

TY Imports

1,100

885

1,100

989

1,000

TY Imp. from U.S.

0

0

0

0

0

Total Supply

3,443

3,228

3,568

3,242

3,252

MY Exports

0

0

0

0

0

TY Exports

0

0

0

0

0

Consumptio

2,775

2,775

2,800

2,800

2,820

Ending Stocks

668

453

768

442

432

Total Distribution

3,443

3,228

3,568

3,242

3,252

Rice production is forecast to increase from 1.8 million tons in 2014/15 to 1.81 million tons in 2015/16. This expected increase is due to new planted areas in East Malaysia, better irrigation system, and the use of high yielding paddy varieties. Producers receive various incentives to produce, such as subsidized seeds, fertilizer, pesticides, and irrigation. The GOM set the support price for paddy at RM1,200 per ton.

Domestic consumption is relatively stable and is forecast at around 2.8 million to 2.82 million tons in 2014/15 and 2015/16 respectively. Any growth can be attributed to the immigrant labor population.

For premium rice such as Basmati rice and Fragrance Rice are a non-controlled items. Prices for ST15-grade rice (15% broken), which is mainly produced domestically, is controlled at RM1.65 (US$0.55) to RM1.80 (US$0.60) per Kg (subject to transportation cost).

In 2014, Thailand was the largest exporter quadrupling it volume from 144,281 tons in 2013. Vietnam's export dropped from 553,981 tons in 2013 to 321,500 tons in 2014. Other major exporters of rice to Malaysia in 2014 were Pakistan, Indonesia and Cambodia.

Rice Imports:

Import Trade Matrix

Country

Malaysia

Commodity

Rice

Time Period

Market Begin Jan

Units:

1000MT

Imports for:

2013

2014

U.S.

0

U.S.

0

Others

Others

Thailand

144

422

Vietnam

554

321

Pakistan

128

159

Indonesia

6

40

Cambodia

42

35

Total for Others

874

977

Others not Listed

11

12

Grand Total

885

989