Paddy production analysis in non-granary areas

Currently, it has been shown that Malaysia has a low production of paddy. That is one of the reasons why Malaysia has been importing rice from other countries. To help Malaysia overcome the rice output shortage, this study has decided to determine whether planted area and paddy yield affect paddy production in a long-run scenario. This study analyses the paddy production in non-granary areas in Johor, Melaka, Negeri Sembilan, Pahang, Pulau Pinang, and Terengganu from 2011 until 2020, during the main season in Malaysia. In order to determine the presence of the long-run relationship, this study employed the Pedroni cointegration test. It was found that most of the statistical tests from the Pedroni cointegration test are significant at a 5% significance level. It can be concluded that there is a long-run relationship between planted area, paddy yield, and paddy production. Thus, it is recommended that future researchers investigate these effects in detail to help maximise paddy production, especially in non-granary areas.