KUALA LUMPUR, Oct 13 — The government will provide RM2.6 billion to channel various forms of subsidies and incentives to paddy farmers and fishermen in Budget 2024, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, also the Finance Minister, said the allocation has increased by RM600 million compared with this year, in line with the government’s decision to increase the rate of the Paddy Price Subsidy Scheme from RM360 to RM500 per metric tonne.
When tabling the Budget 2024 in the Dewan Rakyat, he said the government also decided to increase the floor price of rice from RM1,200 to RM1,300 per metric tonne to help farmers’ income.
Apart from that, the government has started a pilot effort to plant five-season rice within two years in several paddy cultivation areas, including Bota Kiri in Perak, Kangar in Perlis, and Kota Sarang Semut in Kedah.
“This aligns with efforts to upgrade the irrigation infrastructure in the Muda Agricultural Development Authority (Mada) areas in Perlis and Kedah to increase rice production with an investment worth RM3 billion.
“The government also agreed to increase the subsidy allocation for dryland paddy or hill paddy from RM40 million to RM50 million,” Anwar said.
As for fishermen, the government continues to maintain the diesel subsidy at the lowest price of RM1.65 per litre to a certain class of fishermen, with a quota of 840 million litres per year.
Fishermen were also given up to RM300 a month in subsistence allowance, up to RM1,000 a month in fishermen’s catch incentive, and RM10 million to build new and renovate existing dilapidated fishermen’s houses.
As much as RM400 million has been provided to implement the Food Security Strengthening programme, with a special focus on increasing the production of local food crops, which are still dependent on imports.
“It includes RM150 million to collaborate with the state governments in optimising the use of land to increase crop and livestock yields; RM50 million to implement a new method of procurement of fertilisers through open tenders, to give rice farmers a choice of fertilisers they want to use,” he said.
To support the increase in the production capacity of agricultural products and the competitiveness of young agropreneurs, Agrobank provides loan facilities to agro-food entrepreneurs of up to RM430 million.
The government will similarly protect farmers, breeders, and fishermen who face disasters that destroy crops and livestock, with a RM50 million allocation under the Agricultural Disaster Fund to compensate up to 50 per cent of losses due to disasters.
Anwar added that RM50 million was also provided as initial funds under the Takaful Scheme for Paddy Crops, for the benefit of over 240,000 paddy farmers.
— Bernama
