PETALING JAYA: The current Budi Madani diesel subsidy scheme eligibility criteria are too stringent for farmers and smallholders, said Datuk Seri Dr Wee Ka Siong.
The MCA president said the current requirement for all applicants to be registered companies with annual sales revenue ranging from RM50,000 to RM300,000 means that the vast majority of farmers and smallholders will not qualify for the subsidy.
Dr Wee pointed out that the RM200 per month subsidy payments are insufficient for smallholders and farmers, as diesel usage is not only used for transportation but also for various agricultural machinery such as irrigation systems, generators and pumps.
"Should the diesel subsidy rationalisation take place, smallholders and farmers' operational costs will increase and this will lead to either increased food prices or reduced production," said Dr Wee in a Facebook post on Friday (June 7).
"Given that food security and food prices are issues of the utmost public importance, it is a big mistake to put the agriculture sector under the Budi Madani scheme," he added.
Dr Wee argued that, as with the transportation sector, the agriculture sector should also be made eligible for the Subsidised Diesel Control System 2.0 instead of being subjected to the Budi Madani diesel subsidy scheme.
"However if the government insists on placing the agriculture sector under the Budi Madani scheme, the amount of monthly subsidies should be increased to a more reasonable amount.
"The eligibility criteria should also include sole proprietors, with the qualifying annual sales revenue revised from RM50,000 to RM300,000 to a more reasonable range of RM0 to RM1.5mil," said the Ayer Hitam MP.
