Abstract for: Bio-economic model for paddy and rice industry: A case study from Malaysia

Rice is a staple food for Malaysian population. To sustain paddy production in this country, Malaysia has translated its food security objective into achieving self-sufficiency in rice production at about 65-70% of local consumption. The government of Malaysia implements a wide range of market interventions to achieve the intended level of rice production, including fertilizer subsidy. A bio-economic model is developed to examine the impact of withdrawal fertilizer subsidy and soil fertility on the paddy production, income and self-sufficiency level. The study shows that Malaysia may not be able to sustain the targeted self-sufficiency level without a proper land management policy and organic farming policy, while the consumption of rice continues to rise due to the increase in population.