KUALA LUMPUR, Oct 9 — The government is allocating RM2.62 billion in aid to paddy farmers under Budget 2027, covering various subsidies and incentives to increase rice production and safeguard their welfare.

Prime Minister Datuk Seri Anwar Ibrahim said the assistance would enable paddy farmers to receive benefits of about RM4,300 per hectare of paddy field, including subsidies for seeds, fertiliser, pesticides, ploughing costs and paddy prices.

He said the government had agreed to increase the paddy harvesting incentive from RM50 to RM100 per hectare per season, while the ploughing incentive, which had been increased to RM300, would be maintained and extended to paddy farmers in Sabah and Sarawak.

“To rehabilitate and rejuvenate paddy fields, RM20 million will be provided to supply foliar fertiliser for more than 10,000 hectares of paddy fields.

“The Five-Season Padi Cultivation in Two Years Project is crucial to ensuring the continuity of the country’s rice supply, and work to upgrade irrigation systems in 15 paddy field blocks is progressing according to schedule. In addition, the Pedu Dam rehabilitation project in Kedah is expected to be completed by the end of 2027,” he said when tabling Budget 2027 in the Dewan Rakyat today.

For the fisheries and fishing sector, he said the government would increase the number of special boat licence holders from 17,000 to 20,000 fishermen, with an allocation of RM30 million, while providing aquaculture project grants and RM40 million in financing through Agrobank.

Eligible fishermen will also continue to enjoy subsidised diesel at RM1.65 per litre, while RM178 million will be allocated, among others, for catch incentives and a monthly Cost of Living Allowance of up to RM300.

Anwar said the government had allocated RM300 million to strengthen cooperation with state governments in implementing agrofood projects, in addition to providing more than RM1 billion in financing to agro-entrepreneurs through Agrobank, Bank Rakyat and the Malaysia Cooperative Societies Commission.

For smallholders in the oil palm sector, the government is providing RM100 million in hybrid financing for replanting involving 4,500 smallholders, as well as RM200 million in soft financing, with smallholders bearing only a two per cent interest rate and being granted a four-year repayment deferment.

The allocation for rehabilitating farm roads will also be doubled from RM50 million to RM100 million, while RM30 million will be provided to curb diseases and pest attacks affecting crops, including oil palm, cocoa and pepper.

The government has also agreed to increase the Rubber Production Incentive from RM3 to RM3.30 per kilogramme, which is expected to benefit more than 300,000 rubber smallholders.

Anwar said the government had also approved RM1.26 billion for 2027 to strengthen Felda’s finances, maintain roads and provide housing for the Felda community.

He said the average net income of Felda settlers had increased from RM2,272 per month in 2023 to RM3,800 this year, while 109,000 settlers now held land titles. — Bernama