KUALA LUMPUR: The RM2.62bil allocation in aid for paddy farmers and RM300mil for agrofood projects under Budget 2027 must translate into increased domestic food supplies and ensure prices remain affordable for consumers.
Federation of Malaysian Consumers Associations (Fomca) chief executive officer Dr Saravanan Thambirajah said assistance worth about RM4,300 per hectare for paddy farmers, as well as an increase in the harvesting incentive from RM50 to RM100 per hectare per season, was an important measure to help farmers cope with rising production costs.
He said the proposed five-season paddy planting programme over two years had the potential to increase domestic rice production if supported by adequate irrigation systems, a stable water supply, modern agricultural technology and proper agricultural planning.
"The government must set measurable production targets and regularly assess whether the assistance genuinely increases yields, reduces production costs and strengthens rice availability,” he told Bernama when commenting on Budget 2027, tabled by Prime Minister Datuk Seri Anwar Ibrahim in the Dewan Rakyat on Friday (Oct 9).
Fomca also welcomed the RM300mil allocation for federal and state agrofood projects, as well as financing facilities worth more than RM1bil for agropreneurs.
Saravanan said close cooperation between the federal and state governments was essential to address issues involving land availability, agricultural infrastructure, logistics and food distribution.
He said the financing facilities must also be easily accessible to small-scale farmers, young agropreneurs and genuine food producers, rather than benefiting only large-scale operators.
Meanwhile, Putra Business School, Universiti Putra Malaysia lecturer Prof Datuk Dr Nasir Shamsudin said the RM300mil allocation for collaboration between the federal and state governments was a positive step towards increasing domestic food production, but implementation should be guided by each state's competitive advantages, market potential and economic returns.
He said the financing facilities worth more than RM1bil for agropreneurs through banks and relevant commissions must be accompanied by technical support and market access to ensure business viability.
"The success of these initiatives should be measured by increased productivity, lower production costs, greater value added and reduced import dependence for strategic food commodities,” he said.
Nasir said the RM2.62bil allocation for paddy farmers also reflected the government's commitment to protecting their incomes and strengthening national rice supply security, at a time when the country's rice self-sufficiency ratio (SSR) stood at 52.9 per cent.
"However, the effectiveness of subsidies must be assessed based on productivity gains, not merely the amount of assistance disbursed. The subsidy structure should also be gradually shifted from input-based support to incentives based on output, performance and sustainable farming practices,” he said.- Bernama
