Kuala Lumpur:The government has announced a RM2.62 billion allocation under Budget 2027 to support padi farmers with various subsidies and incentives aimed at enhancing rice production and ensuring their welfare. This initiative will provide padi farmers with benefits amounting to approximately RM4,300 per hectare, covering subsidies for seeds, fertiliser, pesticides, ploughing costs, and padi prices.
According to BERNAMA News Agency, Prime Minister Datuk Seri Anwar Ibrahim stated during the Budget 2027 tabling in the Dewan Rakyat that the padi harvesting incentive would be raised from RM50 to RM100 per hectare per season. Additionally, a ploughing incentive, increased to RM300, will now extend to farmers in Sabah and Sarawak. Furthermore, RM20 million will be allocated for foliar fertiliser to rejuvenate over 10,000 hectares of padi fields.
The Five-Season Padi Cultivation in Two Years Project is deemed essential for the continuity of the nation's rice supply, with upgrades to irrigation systems in 15 padi field blocks progressing as planned. The Pedu Dam rehabilitation project in Kedah is also expected to conclude by the end of 2027.
For the fisheries sector, the government plans to expand the number of special boat licence holders to 20,000 fishermen, supported by a RM30 million allocation. This will be complemented by aquaculture project grants and RM40 million in financing through Agrobank. Fishermen will continue to receive subsidised diesel at RM1.65 per litre, with RM178 million allocated for catch incentives and a monthly Cost of Living Allowance of up to RM300.
The government has also earmarked RM300 million for cooperation with state governments to implement agrofood projects, alongside over RM1 billion in financing for agro-entrepreneurs through Agrobank, Bank Rakyat, and the Malaysia Cooperative Societies Commission.
In support of smallholders in the oil palm sector, RM100 million in hybrid financing for replanting 4,500 smallholders is planned, alongside RM200 million in soft financing with a two percent interest rate and a four-year repayment deferment. The budget for rehabilitating farm roads will double to RM100 million, while RM30 million is allocated to combat diseases and pest attacks affecting crops such as oil palm, cocoa, and pepper.
The Rubber Production Incentive will increase from RM3 to RM3.30 per kilogramme, benefiting over 300,000 rubber smallholders. Additionally, RM1.26 billion has been approved for 2027 to bolster FELDA's finances, maintain roads, and provide housing for the FELDA community. The average net income of FELDA settlers has increased from RM2,272 per month in 2023 to RM3,800 this year, with 109,000 settlers now holding land titles.