KUALA LUMPUR – The padi subsidies outlined in Budget 2021 can only support rice production of 1.64 million metric tonnes, short of the 1.9 million target, said Agriculture and Food Industries Minister Datuk Seri Ronald Kiandee (Bersatu-Beluran) today.
In his winding-up session, he said the Finance Ministry is aware of the shortfall and his ministry can apply for additional allocations when needed.
“There is definitely a deficit in terms of projections. This matter has been taken to the Finance Ministry, and they are ready to refer and process as they see appropriate,” said Kiandee.
“Your concern is also our concern.”
Kiandee said the approved allocation for his ministry under operating expenditure decreased by RM100 million or 2% lower than this year’s, while the development expenditure for 2021 is RM250 million less compared to this year.
“Although there is a reduction, the ministry will continue to play a role in implementing the budget effectively,” he said.
“The ministry will continue to provide incentives and subsidies to all parties, such as farmers and fishermen with a total allocation of RM1.57 billion.
“Padi subsidies and incentives amount to RM960 million, including RM40 million for fertiliser and pesticide subsidies and RM570 million for padi price subsidies to benefit 300,000 padi farmers nationwide.”
Amiruddin Hamzah (Independent-Kubang Pasu) then asked if padi farmers have stopped their cultivation, if their yields are expected to be lower, and whether the government intends to reduce subsidies on padi price.
“The allocation for padi farmers is now reduced from RM620 million to RM570 million, and we see maintenance of irrigation and drainage systems also reduced by RM10 million. I believe now is the time to emphasise on guaranteeing our country’s food supply,” he said.
Sim Tze Sin (PH-Bayan Baru) also asked if the RM50 million reduction will impact the padi subsidies and result in a reduction in farmers’ income.
Kiandee said that the budget reduction does not only affect his ministry.
“If we look at the other ministries as a whole, there is a slight reduction and increase here and there due to the country’s financial constraints,” he said.
Meanwhile, National Unity Minister Datuk Halimah Mohamed Sadique said in her winding-up speech that she will work with what her ministry is given.
“We will make do with the existing allocation supplied to the ministry for the implementation of the national unity policy, national unity action plan, and other matters I have mentioned,” she said.
She added that her department is determined to set out a clear direction to take the national unity agenda more seriously.
Datuk Seri Ahmad Maslan (BN-Pontian) had asked her if the RM423.28 million allocation in Budget 2021 is sufficient to implement programmes under her ministry. – The Vibes, November 26, 2020
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