PADDY INDUSTRY DEVELOPMENT PROGRAM

The Kedah and Perlis states are well-known for rice cultivation so much so that they are known as rice granaries. The area managed by the Muda Agricultural Development Authority is 130,282 hectares where 100,685 hectares are paddy fields. This paddy area covers two (2) states namely Kedah (82,968 hectares) and State of Perlis (17,717 hectares). The area of Rice Field Paddy area represents 35.13% of the country’s rice paddy area. The detail of the area of the Muda Regions relative to the size of other granaries in Malaysia is as follows: –

The MADA area is the largest in Malaysia, in order to ensure MADA’s management and administration travel smoothly, MADA is divided into four (4) regions namely, Region I (Perlis), Region II (Jitra), Region III (Pendang ) and Region IV (City of Sarang Semut). Detailed information on the area of MADA is as follows: –


In order to ensure the production of rice yields in Muda area can be increased from time to time. MADA is constantly working to improve the implementation of rice paddy activities through Paddy Industry Development programs. The program is implemented annually by focusing on improvements in rice cultivation activities such as management, technology, infrastructure development, agronomy and other support programs. Detailed information of the Paddy Industry Development Program that is carried out throughout the year 2016 is as follows: –

A. PADDY PLANTING MANAGEMENT
i. Paddy Plant at MUDA Areas
a. Paddy Plant Activity for Whole Muda Area
Each Region of MADA is responsible for planning, coordinating, assisting and monitoring every implementation carried out in localities. In addition, these localities also help provide advice, guidance and assistance to farmers. This is one of the ways to achieve the targeted mission of maximizing farmer income. The detailed information of the growing area for each locality in the Muda Regions is as follows: –

b. Performance And Achievement Of Paddy Plant Activity For Overall Muda Area
The performance and achievement of rice cultivation activities in the Muda Regions is influenced by several factors including adequate water resources, adequate supply of inputs, good irrigation and irrigation systems and timely planting of rice. In addition, it is also assisted by effective expansion activities by MADA officials. During each season, the MADA monitored the performance of paddy activities and this is one of the ways to ensure the achievement of rice capacity in Muda area is at its highest level. Achievements and achievements are measured based on the following indicators: –

1. Density And Growth Of Paddy Plants For Overall Muda Areas
For the year 2016 the density reached was 201,239 hectares (199.9%) for two crop seasons. The area of paddy plantation in Season 2/2015 is 100,636 hectares and the area of paddy season 1/2016 is 100,603 hectares. In 2016 there are still 131 hectares of rice that are not planted. The density data of 2016 is as follows:


2. Average Gross Output And Paddy Production For Overall Muda Area
The average gross revenue performance in 2016 compared with 2015 showed an increase of 478 kg (7.7%). In 2016, the average yield was 6.194 tonnes / hec while in 2015 the average yield was 5.725 tonnes / hec. Detailed information is as follows: –

The 2/2015 and Off-season 2/2015 Season outcome trends for 2016 are found to be more stable than in the 2/2014 Summer Season and Outside Season 1/2015 for 2015. For 2016 the outcome outcome for the Season and Outside Seasons is almost balanced, this helps to contribute to the increase of state rice productivity.

The results statistics show results in 2016 are the highest compared to the previous year. The difference in paddy production for 2016 and 2015 is 125,557 tonnes.

For 2015 revenue achievements for the Main and Outside Season are unbalanced, this is due to Season 2/2014 assaults and disasters (flood and fall) attacks.

3. Farmers’ Income Year 2016
The annual income of MADA farmers is based on the Annual Seasonal Paddy Production Survey information. The Main Season is chosen as the basis for calculating the annual income of the Muda Regions as it is the “standard” set by the National Level Secretariat to be in line with other granaries in Malaysia. Some assumptions have been made to ensure that the estimates of farmer income in the Muda Areas of 2016 are appropriate and reflect the real reality of MADA farmer’s income source.

As Malaysia’s main rice granary area, MADA farmer income has been broken down into the main categories of:
– Income from agriculture (Paddy and Non-Paddy Agriculture)
Income from agriculture in 2016 was increased from RM28,006 to RM28,882.00. An increase of RM 876.00 (3.13%).
– Non-Agricultural Income Non-Agricultural Income this season was found to be the same for both years of RM1,710.00 in 2015 to RM 1,437.00 in 2016. The decline was RM273.00 (-16.0%).

The total revenue this year as compared to 2016 increased from RM 29,443.00 to RM 30,319.00. The increase was RM876.00. Income information is as follows: –


ii. NKEA EPP 10 Program – Strengthening Rice Plant Productivity in Muda Areas
a. NKEA EPP 10 Program Background
Implementation of the NKEA Rice Estates Project EPP 10 was initiated in 2011 in the Muda Regions under the Government Transformation Program to address three (3) major issues of low infrastructure density, uneconomic farm size and old farmers in improving rice yields.


Therefore, Entry Point Project 10 (EPP 10): Strengthening Rice Plant Productivity in Muda Areas is one of the Government’s efforts to increase the income of farmers in the Muda Regions. The actions to be taken under EPP 10 are:
– Encourage commercial scale paddy cultivation by establishing standard rice farming contracts and financial incentives to enable paddy farmers to outsource their paddy management.
– Increase the density of farm infrastructure to a minimum of 30 meters / hectare.
– Increase the involvement of farmers in the entire rice value chain.

Through the involvement of farmers under the NKEA EPP 10 program, farmers will benefit through increased yields and further increase income where net yields are fully obtained by farmers at optimum costs, incentive payments within agreed periods, other incentives such as dividends from the Area Farmers’ Organization (PPK) and payment of wages to farmers registering to work under the KDP who work on the farm.

b. Achievement in 2016
3. Implementation of  NKEA EPP 10 Paddy Estate Project in 2016

Implementation of  NKEA EPP 10 Paddy Estate Project has started in Season 2/2011. As of 2016, the project area has reached 30,623,179 hectares (Chart 7) compared to the cumulative target of 30,000 hectares (102%) involving a total of 16,595 farmers in 551 projects. The performance of the area and number of farmers who have joined the NKEA Rice Estates Project EPP 10 for 2016 is 5,296,660 hectares with the involvement of 2,383 farmers.


The performance of the area and the number of farmers in Group A, B, C, D, E and F who participated in NKEA EPP 10 Paddy Estate Project by Region for 2011 to 2016 are as follows: –

The average yield of the NKEA EPP 10 Paddy Estate Project for 2016 is 6,315 tonnes / hectare, taking into account the average yield achieved for Season 2/2015 of 6.305 tonnes / hectare and Season 1/2016 of 6,325 tonnes / ha. The average achievement in 2016 showed an increase of 0.628 tonnes compared to 2015. Among the factors contributing to the increase in yields in the project was due to the reduction of pest and disease and paddy crop management in the project area. In addition, the expansion program involving rice raising campaigns to the project management body also helped to improve the project management under the supervision of the KDP.

The average performance of the NKEA EPP 10 Paddy Estate Project by Region for 2012 to 2016 is as follows:

To support the implementation of the NKEA EPP 10 Paddy Estate Project, the Government has channeled the allocation under the Government Incentive Component and Estate Operations Component Component. Incentive provisions are given to farmers who have agreed to participate in and hand over the rice management rights to the KDP that act as operators conducting the project. While the capital allocation of farm operations is allocated as an additional fund to the KDP that serves as the operator who manages the management of the project rice field.

The total amount of incentives allocated for the period 2011 to 2016 at RM2,000.00 per hectare for 5 seasons or RM1,000.00 per hectare for 10 seasons is RM219,446,883.00. Provision of incentives for project participation that has been channeled to farmers in 2016 is RM36,888,132.00 million with a rate of RM2,000 per hectare for 5 seasons or RM1,000 per hectare for 10 seasons. The distribution of this incentive is for participants of Groups D, E and F only. For participants of the Group F project, the incentive channeling was channeled to the participants involved at a rate of only RM1,000.00 per hectare for 10 seasons.

The table below shows the incentive value that has been distributed by the year from 2011 to 2016.

Meanwhile, the allocation of RM52,412,136.40 farm capital allocation has been allocated from 2011 to 2016 to KDP to assist in the implementation of rice field operations and the management of the NKEA EPP 10 Paddy Estate Project. The table below shows the value of the operating capital of the farm that has been allocated by year from 2011 until 2016.