Prime Minister Sitiveni Rabuka has announced a historic price for rice paddy.

The revised price for grade 1 has increased from $850 to $1000 per tonne, whereas grade 2 has increased from $750 to $800.

This is the highest price paid to rice farmers in history.

Rabuka, while announcing the price, says that food security and import bill reduction are very important.

He adds that the Coalition Government is committed to revitalizing not only the rice industry but other agriculture sectors that have huge potential.

According to Rabuka, the new price takes immediate effect.

The new price would benefit over 500 rice farmers, who are expected to supply over 2000 tonnes of paddy this coming season.

Fiji Rice Chair Raj Sharma says there is a shortage of brown rice as the demand has increased.

He adds that this announcement is very timely, as it is peak planting time.