KUALA LUMPUR: There is currently no special fund to offset the rising costs of agricultural inputs as these price hikes are largely driven by external factors, says Agriculture and Food Security Minister Datuk Seri Mohamad Sabu.
However, he said the government has taken steps to ease the financial burden on farmers, especially paddy growers, by ensuring the continued supply of essential inputs like fertilisers and pesticides.
“To help reduce the impact of higher production costs, we have reviewed the pricing structure of supply contracts under various support programmes,” he said in a written reply to Hulu Selangor MP Mohd Hasnizan Harun in the Dewan Rakyat.
These programmes include the Federal Government Paddy Fertiliser Subsidy Programme (SBPKP), the Paddy Production Incentive Scheme (SIPP), and the Upland Paddy Fertiliser and Pesticide Subsidy Scheme (SBRPB).
As part of these efforts, the government has increased the fertiliser subsidy by 25%, from RM2,552.20 to RM3,184.40 per hectare per season.
At the same time, Mohamad Sabu said his ministry has applied for a higher pesticide allocation in the 2026 operating budget.
The proposed rate is RM300 per hectare per season, up from the current RM200. The approval of this request, however, depends on the country’s financial position.
The minister also acknowledged concerns over rising input costs, including fertiliser, pesticides, and seeds, in recent years, noting that much of the raw materials used in their production are imported.
“This makes agricultural inputs vulnerable to global price changes and foreign exchange fluctuations, which in turn drives up farming costs and affects farmers’ incomes,” he said.