THE Farmer Subsidy and Incentive Scheme, meant to increase the country’s rice supply, is not managed prudently, said the Auditor-General’s Report Series 2 2018 released today.

It said an audit conducted from January to August found weaknesses in the registration process, and awarding of subsidies and incentives; delays in the payment of claims by suppliers, signing of contracts and distribution of fertiliser; and, issues with the quality of padi seedlings.

Padi production between 2016 and last year did not meet the annual targets, said the report.

“Annual padi production dropped between 2.7 million metric tonnes (1.4%) and 2.57 million metric tonnes (8.5%) in the period. Average padi production in the period, too, did not meet the target.”

It cited a decrease in the size of padi-planting areas, low-quality seedlings and disease afflicting crops as reasons for the drop.

However, it said, the frequency of planting exceeded the target of 1.57 times, at 1.75 times.

“The Agriculture and Agro-based Industry Ministry set the self-sufficiency level (SSL) targets for 2016, 2017 and 2018 at 85%, 80% and 80%, respectively.

“The audit found that the SSL targets were not achieved. Instead, there was a decline of 7.6% to 14.7% due to the drop in padi yield and production per hectare.”

In conclusion, said the report, the scheme is not being managed prudently, efficiently and effectively.

“There is poor internal control in the registration of farmers. This has caused leakages.”

It recommends that the ministry review the ePadi system to ensure that only eligible farmers are registered, and coordinate the management system with the relevant agencies.

“The ministry must also investigate the awarding of subsidies and incentives to farmers whose MyKad numbers do not exist or are incomplete, or those who have died.” – Bernama, December 2, 2019.