PUTRAJAYA: The government has agreed to provide advance financing for the ploughing and harvest incentive following farmers' concerns over rising operational costs, says Prime Minister Datuk Seri Anwar Ibrahim.
He said the decision was made at the National Economic Action Council (MTEN) meeting on Tuesday (May 5), taking into account farmers' need to rent machinery while ensuring ploughing continues without disruption.
"Farmers are required to rent ploughing machinery, but this requires upfront capital.
"Therefore, we believe it is appropriate to provide an advance of RM200 per hectare so that ploughing activities can proceed smoothly," he told a press conference.
He added that the advance would have a financial implication of RM48mil and is expected to benefit some 240,000 registered padi farmers nationwide.
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Previously, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the total amount of the incentive was RM210, comprising RM160 for ploughing and RM50 for harvesting.
The amount was then increased to RM300 per hectare following the increase in commercial diesel prices.
Anwar said the prolonged situation is not easy, as seen in the case of RON95, where despite providing assistance and diesel subsidies, the government is now incurring an additional RM5bil per month.
He said, however, that the government must continue to confront these challenges and do its best to ease the burden faced by the people, particularly those who are relatively less well-off, poor and vulnerable.
