Malaysia doubles padi farmer subsidies amid rising diesel costs

The Malaysian government has announced new financial support for padi farmers struggling with rising costs. Prime Minister Datuk Seri Anwar Ibrahim revealed the measures at a press conference addressing the global supply crisis. The initiative includes higher subsidies and advance payments to ease the burden of fuel and machinery expenses.

The Ploughing Incentive for Padi Farmers (IPKP) assistance has been doubled from RM160 to RM300 per hectare. This increase aims to offset the impact of surging commercial diesel prices on agricultural operations. The decision follows concerns over geopolitical tensions in West Asia, which have driven up input costs for farmers.

An additional advance payment of RM200 per hectare will also be provided under the Ploughing Incentive Special Aid. This upfront support is designed to help farmers cover the capital needed for renting ploughing machinery. The measures were approved during a National Economic Action Council (MTEN) meeting. Nearly 240,000 registered padi farmers across the country are set to benefit from the scheme. The total allocation for this initiative amounts to RM48 million.

The government’s move comes as farmers face mounting financial pressure from global market instability. With higher subsidies and early payments, officials hope to stabilise production costs for Malaysia’s padi sector. The measures take effect immediately, offering relief to those affected by rising operational expenses.