PUTRAJAYA: A proposal to increase and expand diesel subsidies for those in the agriculture sector will be brought to the Cabinet meeting today, says Datuk Seri Mohamad Sabu (pic).
The Agriculture and Food Security Minister said further consideration will be given to expanding the diesel subsidies for padi and crop farmers, and fishermen.
He said the proposal was raised at the National Economic Action Council meeting yesterday to explore immediate measures to ease operational cost pressures on the country’s food production sector.
Among the proposed measures, he added, is expanding diesel subsidies through the fleet card system to more players in the agriculture sector, as well as reviewing the possibility of increasing the existing subsidy rate.
“This proposal will be brought to the Cabinet meeting tomorrow (today) for a decision,” he said at a press conference after the launch of the National Ruminant Industry Empowerment Programme yesterday.
Besides this proposal, Mohamad said the government is also studying immediate measures to address the potential increase in fertiliser prices.
He said this is also a pressing issue affecting the agricultural sector as a whole and could significantly impact padi farmers and vegetable growers if prices rise.
Mohamad said the move is crucial as the agriculture and fisheries sectors are facing rising costs, including fuel, fertiliser and logistics costs, following recent global developments.
To alleviate the pressure, he said the government is exploring alternative sources for fertiliser imports with several countries, including Russia, following export restrictions imposed by China.
Meanwhile, the ministry’s secretary-general Datuk Seri Isham Ishak said the country has sufficient livestock feed supply, as imports were secured before the Middle East conflict erupted.
However, he said supplies are expected to decline within about a month and will need to be replenished.
Livestock feed is largely imported from countries such as Argentina and Brazil.
While supply remained adequate for now, he said the main factor that could affect prices, is transportation costs.
On the grain corn pilot projects in Cuping, Perlis, and Kota Belud, Sabah, Isham said they have shown positive results and a large-scale national grain corn planting programme is expected to be launched in Cuping this June.
“We are planning that within the next four years, we will achieve a self-sufficiency ratio (of 30% for grain corn to support the country’s livestock feed needs,” he said.
