THE Agriculture and Agro-based Industry Ministry (MOA) is mulling a series of policy shifts for the sector which is likely to include output-based agricultural subsidies, among others, its deputy minister Sim Tze Tzin said today.

Putrajaya spends more than RM2 billion in various subsidies and cost of living allowances but the farming, livestock and fisheries community are still mired in poverty, Sim said.

“Hence, there has to be new policies to change the fate of farmers, livestock breeders and fishermen.”

The Bayan Baru MP said the ministry is discussing policy adjustments to address the issue.

“The ministry is mulling to change subsidies from input-based to output-based,” he said in his speech at the National Farmers’ Organisation (Nafas) Jalinan Mesra Peladang 2019 event in Selayang this morning.

“Instead of channeling subsidies via big companies, we want to give subsidies directly to farmers so they can choose to buy input items, for example seeds, pesticides, fertilisers and others,” he said.

He also added that the government could also leverage on technology with the availability of mobile phones with all farmers, to channel the subsidies directly to the community.

Besides that, the government is also looking to break the oligopolistic structure of the market, which is controlled by a few companies, to allow more entrants to increase competition and bring down the prices of food items.

“These are the policy shifts which we hope will spur (the agricultural sector) and empower the farmers to make the best choices,” he said.

He said many farmers are capable and graduates have also been venturing into the sector.

Sim added that he is confident of a positive outlook for the sector.

The government also provides subsidies for fertilisers, pesticides, fuel, diesel and cost of living allowances for fishermen. – November 10, 2019.