KUALA LUMPUR – The government has allocated RM1.7 billion in subsidies and incentives for farmers and fishermen under Budget 2021.
Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz, tabling the Budget today, said Putrajaya has also set aside RM300 million for the rubber production incentive scheme that is expected to benefit some 150,000 smallholders.
“In addition, we have allocated RM570 million in padi price and crop subsidies, and incentives amounting to RM960 million, including the newly introduced hill padi fertiliser subsidy of RM40 million.
“All this assistance is expected to benefit more than 300,000 padi farmers nationwide, including those in Nabawan, Sabah, and Kanowit, Sarawak.”
He said fishermen’s living allowance will be increased from RM250 to RM300 per month starting next year.
“More than 40,000 fishermen will enjoy this assistance, involving an allocation of RM151 million.”
To assist Felda settlers, he said, the government has allocated RM400 million to write off their farms’ debts and provide them with development programmes to obtain new yields.
The Budget also sought to empower the agriculture sector by introducing key initiatives.
Tengku Zafrul reiterated that the sector, which accounted for 7.1% of gross domestic product last year, is projected to continue to grow at 4.7%.
“As such, several key initiatives for the agriculture and food industries will be implemented, including the expansion of the community garden programme to semi-urban and rural communities, with an allocation of RM30 million.”
The programme provides equipment worth up to RM500 per individual or RM50,000 per community, and is set to benefit 60,000 people.
A further RM50 million is allocated for the implementation of the organic agriculture project that is expected to benefit 1,000 communities.
“Thirdly, the implementation of the e-satellite farm programme, with an allocation of RM10 million in grants of up to RM30,000 for each member of the Area Farmers’ Organisation (PPK) for them to purchase agriculture equipment, including drones. The programme is expected to benefit more than 300 PPK, with a membership of nearly one million farmers and planters,” said Tengku Zafrul.
He said the allocation will also go towards a programme for fishermen to upgrade their nets, boats and other equipment.
Up to RM5 million is offered at an interest rate of 3.5% for a period of 10 years to Zones A and B fishermen, amounting to RM150 million, which will be available through Agrobank.
Farmers are also provided assistance under the agrofood chain modernisation programme, which extends financing of up to RM1 million for the acquisition of equipment and technology. Some RM60 million has been allocated for this.
Tengku Zafrul announced the implementation of an aquaculture development programme with an allocation of RM10 million in matching grants of up to RM20,000 each to micro-entrepreneurs for them to buy equipment to grow high-value aquaculture livestock, such as lobster and garoupa.
He announced RM100 million for the implementation of agriculture projects and impactful high-value farming through cooperation with state governments, among them a pineapple planting project in Johor and lobster farming in Negri Sembilan.
“As part of efforts to increase the sustainability of various commodity sectors, several measures will be taken, including continuing the sustainable palm oil certificate ownership programme with an allocation of RM20 million to boost growth and enhance the competitiveness of the country’s palm oil industry, with a matching grant of RM30 million to encourage investment in mechanisation and automation.”
There will also be a RM16 million matching incentive for latex production, to spur production in Pahang, Terengganu and Kelantan. – The Vibes, November 6, 2020
