THE Plantation and Commodities Ministry has identified about RM8 billion in subsidy savings, which it plans to reinvest in smallholding farmers and related schemes.
Minister Datuk Seri Johari Abdul Ghani announced the launch of a scheme called "Budi Agri Komoditi" to allocate these subsidies to farmers. The aim is to boost production and strengthen the country’s food security while reducing reliance on imports.
Johari said the funds were redirected to farming as a result of diesel subsidy rationalisation.
Under the scheme, smallholders in sectors such as oil palm, cocoa, rubber, kenaf, and tobacco can receive grants of up to RM2,400 in subsidies annually. This amount can be used for savings or unexpected expenses, Johari said after launching the scheme at Taman Agripolitan in Gua Musang, Kelantan, recently.
Among those in attendance was the National Kenaf and Tobacco Board chairperson, Datuk Wan Abdul Rahim Wan Abdullah.
Johari expressed concern that out of the 300,000 commercial smallholders in the country, only 16,000 have registered for the subsidy scheme.
To address this, the ministry has decided to embark on a nationwide roadshow to raise awareness about the initiative and encourage greater participation among farmers.
Smallholders are typically those cultivating between 2.5 and 4.5 hectares of fertile land.
When asked about the low registration numbers, Johari suggested that many smallholders may lack internet access, as they reside in rural areas. Therefore, the ministry plans to conduct in-person sessions to effectively communicate the benefits of such schemes.
Johari said the country is committed to expanding its commodities sector to reduce imports and diversify its agricultural landscape. To achieve this, smallholders must actively contribute by increasing their production. – August 17, 2024.
