BUDGET 2024 proposes to provide RM2.6 billion to provide various forms of subsidies and incentives to farmers and fishermen, Prime Minister Anwar Ibrahim said today.

The finance minister said this was an increase of RM600 million from last year’s allocation.

“The increase is in line with the government’s decision to increase the subsidy rate for rice prices from RM360 to RM500 per metric tonne,” he said during the budget tabling today.

He said the government will also increase the floor price of rice purchases to RM1,300 per metric tonne to boost farmers’ income.

On food security, Anwar said Budget 2024 will see an allocation of RM400 million to implement the Food Security Strengthening Programme. 

“The focus is on increasing the production of local food crops that still depend on external imports,” he said, adding that RM150 million will be allocated to collaborate with state governments in optimising land use to increase crop and livestock yields.

“RM50 million will also be allocated to implement a new method of open tender procurement for fertilisers, giving farmers the choice of fertilisers they want to use.

“Another RM50 million will be allocated to supply 50,000 farmers with bio and organic fertilisers to improve soil fertility,” he said.

He also announced that Agrobank will provide loan facilities to agro-food entrepreneurs with funding availability of up to RM430 million.

In addition, RM50 million is allocated under the Agricultural Disaster Fund to provide compensation for up to 50% of the loss value due to disasters.

“Another RM50 million is allocated as seed money under the Padi Takaful Scheme for the benefit of more than 240,000 farmers,” he said. – October 13, 2023.