Assessing Economic Sustainability of Malaysian Rice Farming (1972-2014) / Khairun Nisaa' Mohd Nor... [et al.]

Mohd Nor, Khairun Nisaa' and Arumugam, Nalini and Ali, Adam and Pahang, Josephine Tening (2018) Assessing Economic Sustainability of Malaysian Rice Farming (1972-2014) / Khairun Nisaa' Mohd Nor... [et al.]. Journal of Academia, 6 (1). pp. 105-111. ISSN 2289-6368

Abstract

The recent focus of agricultural planning is on sustainable development which is very pertinent to Malaysian rice industry. Therefore, this study intends to assess the long term economic sustainability of Malaysian rice farming (1972-2014), by reviewing the bottom line of prices and the purchasing power of rice (PPR). Statistical information of time series data on farm harvest price of rice (PR), wholesale commodity price (WP) and rice production for 42 years period was obtained and compiled from the AGROSTAT system of the statistical division of the Food and Agriculture Organization (FAO), the United States Department of Agriculture (USDA), World Bank and the Department of Statistics, Malaysia. The data was analysed using Abdullah’s analysis of the impact of changes the value and purchasing power of money and wheat in real terms (2013, p.71). The outcome reveals that the PR follows the general price trend in commodities, even with increased productivity. Thus, the index value of PR in 2014 at 375% of 1972 prices and WP generally at 614%, then the PPR or ‘real rice’ was only 61% of what it was in 1972, and therefore had lost 39% of its purchasing power, signifying that rice was relatively low in price.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Mohd Nor, Khairun Nisaa'khairunnisaa@perlis.uitm.edu.my
Arumugam, NaliniUNSPECIFIED
Ali, AdamUNSPECIFIED
Pahang, Josephine TeningUNSPECIFIED
Subjects: H Social Sciences > HB Economic Theory. Demography > Price
H Social Sciences > HD Industries. Land use. Labor > Agriculture > Agricultural economics
H Social Sciences > HD Industries. Land use. Labor > Agriculture > Agricultural associations, societies, etc.
Divisions: Universiti Teknologi MARA, Negeri Sembilan > Kuala Pilah Campus
Journal or Publication Title: Journal of Academia
Journal: UiTM Journal > Journal of Academia UiTM Negeri Sembilan
ISSN: 2289-6368
Volume: 6
Number: 1
Page Range: pp. 105-111
Item ID: 29840
Uncontrolled Keywords: Rice farming, Nominal price, Real Price
URI: http://ir.uitm.edu.my/id/eprint/29840

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