Budget 2024: Government allocates RM2.6b for subsidies, incentives to support farmers, fishermen
KUALA LUMPUR, Oct 13 — The government has allocated RM2.6 billion to channel various forms of subsidies and incentives to support farmers and fishermen.
Prime Minister Datuk Seri Anwar Ibrahim, in his Budget 2024 speech, said that this allocation has increased by RM600 million compared to this year in line with the government’s decision to increase the rate of the Paddy Rice Subsidy Scheme from RM360 to RM500 per metric tonne.
Addressing the concerns of paddy farmers, he told the Dewan Rakyat that “the government has set the floor price at RM1,200 since 2014. Glad to announce the government has decided to increase the floor price of paddy to 1,300 ringgit per metric tonne to help rice farmers’ income.”
Anwar said that the government has initiated a “five seasons in two years” paddy cultivation plan to elevate rice production aligns with the plans to modernise irrigation infrastructure in the regions under the Muda Agricultural Development Authority, with an investment of RM3 billion.
“The government also agreed to increase the subsidy allocation for padi bukit or padi huma from RM40 million to RM50 million and this, among other things, will be able to expand the cultivation area of padi bukit from 43 thousand hectares,” he said.
The government has also maintained the diesel subsidy at a nominal RM1.65 per litre for a specific class of fishermen, with a yearly quota of 840 million litres.
“Fishermen will continue to receive a subsistence allowance of up to RM300 per month, along with a Fisherman’s Catch Incentive of up to RM1,000 per month,” he said.
Anwar, who is also the finance minister, announced a RM10 million allocation for the construction and renovation of fishermen’s houses, as well as a RM400 million fund for the implementation of the Food Security Strengthening Program.
This programme will primarily focus on increasing the production of local food crops to reduce reliance on imports.
He also said that RM50 million has been allocated to supply 50 thousand rice farmers with bio and organic fertilisers to enhance soil fertility.
To fortify the production capacity of agricultural products and boost the competitiveness of young agropreneurs, Agrobank is set to offer loan facilities totalling up to RM 430 million.
The government has also established a RM50 million Agricultural Disaster Fund to safeguard the livelihoods of farmers, breeders, and fishermen affected by natural disasters,
“This fund will provide compensation covering up to 50 per cent of losses incurred due to disasters. Additionally, an initial RM 50 million has been allocated for the Rice Crop Takaful Scheme, benefiting over 240 thousand farmers,” he said.
