Malaysia doubles padi farmer aid to offset soaring diesel costs
The Malaysian government has raised financial support for padi farmers to ease the impact of rising diesel costs. Under the Ploughing Incentive for Padi Farmers (IPKP), aid per hectare has doubled from RM160 to RM300. This decision follows concerns over higher fuel prices and global supply pressures affecting local agriculture.
The increase in IPKP assistance was approved during a National Economic Action Council (MTEN) meeting. Nearly 240,000 registered farmers will receive the higher rate, with total funding reaching RM48 million. Additionally, the government will provide an advance payment of RM200 per hectare to help cover upfront machinery rental costs.
Prime Minister Datuk Seri Anwar Ibrahim, who also serves as Finance Minister, addressed the challenges at a press conference. He highlighted geopolitical tensions in West Asia as a key factor driving up fuel and agricultural input prices. The government stressed its commitment to supporting vulnerable groups, particularly those struggling with rising living costs. Officials confirmed that further measures would be explored to reduce the financial strain on the public. The advance payment aims to ensure farmers can continue operations without delay, despite ongoing economic pressures.
The new aid package will directly assist padi farmers with higher production costs. With RM48 million allocated, the government expects the increased subsidies to provide immediate relief. Further steps may follow as authorities monitor global supply challenges and their local impact.
