The economic potential of first hybrid rice variety (KADARIA 1)
adoption in Malaysia
(Potensi ekonomi penggunaan varieti pertama padi hibrid (KADARIA 1) di
Malaysia)

Abstract
The latest innovated hybrid rice known as KADARIA 1 was released and been evaluated in term of yield performance at selected granary areas in Peninsular Malaysia. Though this advanced technology of variety was developed for more than 30 years in other countries, it is relatively new in Malaysia as the technology recently have been explored in less than 10 years. Hybrid type offers a lot improvement in rice yield performance, therefore many countries invested extensively in developing more advanced hybrid seed packages for their farmers. It is notable that the cost of hybrid seed production was higher as compared to the inbred variety type. In addition, the stagnant profit margin due to the low technical efficiencies and decreasing return to scale of elasticities in number of national granaries as well as increasing in production costs in rice cultivation put some critical consideration for new alternatives to be explored. Therefore, this study attempt to determine the potential benefits if hybrid type rice is to be adopted in those granaries since the first hybrid rice variety has been successfully developed namely KADARIA 1. However, this study found that the initial efforts to put hybrid in granaries are quite difficult since the average yield produced (7.32 tonnes/ha) were not significantly different in comparison to the inbred type (6.23 tonnes/ha). Further, the benefit cost ratio (BCR) was not favorable if farmers happened to adopt KADARIA 1 for their farms. The benefit’s margin is plummeted as soon as the hybrid rice price is not subsidized at RM15.00/kg from original estimated commercial price at RM22.29/kg, which implies the need for the government to subsidize the seed when farmers opted to grow hybrid. Even though the yield performance was not significant as evaluated in this study, the exploration in the development of the hybrid rice is undeniably vital considering the ability of this variety type is more resistant to the pest and diseases. The study found that hybrid use in both cultivation and seed production can be potentially implemented to the granaries if few requirements and improvements are to be met. It can be done either through the significant increases in yield performance or producing the hybrid’s seeds economically; or both.

Abstrak
Inovasi terbaru padi hibrid yang dikenali sebagai KADARIA 1 telah dihasilkan dan prestasi hasil varieti ini telah dinilai di jelapang-jelapang terpilih di Semenanjung Malaysia. Walaupun teknologi varieti ini telah dikembangkan selama lebih daripada 30 tahun di negara lain, teknologi ini masih baru di Malaysia kerana 10 tahun kebelakangan ini baru diterokai. Varieti hibrid menyumbang kepada peningkatan dalam prestasi hasil padi, oleh yang demikian banyak negara melabur secara intensif dalam mengembangkan pakej benih padi hibrid yang lebih maju untuk petani mereka. Perlu diperhatikan bahawa kos pengeluaran benih hibrid lebih tinggi jika dibandingkan dengan varieti inbred. Di samping itu, margin keuntungan yang tersekat kerana kecekapan teknikal yang rendah dan penurunan kembali ke skala keanjalan bagi sejumlah jelapang nasional serta kenaikan kos pengeluaran dalam penanaman padi memerlukan pertimbangan kritikal agar alternatif baru dapat diterokai. Oleh itu, kajian ini berusaha untuk menentukan potensi faedah sekiranya padi hibrid ini akan diguna pakai di jelapang-jelapang tersebut susulan varieti beras hibrid pertama berjaya dihasilkan iaitu KADARIA 1. Walau bagaimanapun, didapati bahawa usaha awal untuk menggunakan hibrid di jelapang agak sukar kerana prestasi hasil (7.32 tan/ ha) yang tidak berbeza secara signifikan berbanding dengan inbred (6.23 tan/ ha). Tambahan lagi, nisbah faedah kos (BCR) tidak menguntungkan sekiranya petani menggunakan KADARIA 1 untuk sawah mereka. Margin keuntungan menurun sebaik sahaja harga benih hibrid tidak disubsidi pada RM15.00/kg daripada anggaran asal harga komersial pada RM22.29/kg, yang menunjukkan perlunya kerajaan memberi subsidi benih apabila petani memilih untuk menanam hibrid. Walaupun prestasi hasilnya tidak signifikan seperti yang dinilai dalam kajian ini, penerokaan dalam pengembangan padi hibrid masih sangat penting memandangkan kemampuan varieti jenis ini yang lebih tahan terhadap perosak dan penyakit. Kajian mendapati bahawa penggunaan hibrid dalam penanaman padi dan pengeluaran benih berpotensi dilaksanakan ke jelapang hanya jika beberapa syarat dan peningkatan dapat dipenuhi. Ini dapat dilakukan sama ada melalui peningkatan prestasi hasil yang signifikan atau penghasilan benih hibrid secara ekonomi; atau kedua-duanya.