General 21/10/2026 11:06 AM

Budget 2027: Padi Farmers Seek Faster Incentive Payments, Help With Costs

BERNAMA Malaysian National News Agency
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Budget 2027: Padi Farmers Seek Faster Incentive Payments, Help With Costs

By Mohd Fazil Ahmad

ALOR SETAR, Oct 21 (Bernama) -- Pertubuhan Persaudaraan Pesawah Malaysia (PeSAWAH), an association representing padi farmers, hopes that incentives announced under Budget 2027 will be disbursed promptly to ease their burden, particularly in meeting rising rice cultivation costs.

Its chairman Abdul Rashid Yob said the organisation welcomed the government’s initiatives, including the increase in the padi harvesting incentive (IPP) from RM50 to RM100 per hectare, which would help cover part of the costs.

However, he said additional measures should be considered to address operating costs, which are now estimated at RM6,000 per hectare, putting pressure on farmers’ incomes.

“Existing assistance remains important to padi farmers, but we hope additional measures can be introduced to help reduce operating costs, particularly those involving fuel, machinery hire and agricultural inputs.

“We understand that the government has to balance various needs, but targeted support for padi farmers is crucial to ensuring the sustainability of the country’s rice industry,” he told Bernama recently.

Abdul Rashid also hoped that the announced increase in the IPP could be implemented smoothly, especially as some farmers had yet to receive payments for Season 2/2025 and Season 1/2026.

“We welcome the increase in the IPP as it will provide some relief to padi farmers. At the same time, we hope the payment process can be simplified and expedited so that they can benefit from the assistance when they need it.

“Although the rate of RM100 per hectare is insufficient to cover the much higher overall harvesting costs, the assistance is still welcome as part of the support provided to padi farmers,” he said.

He added that the RM2.62 billion allocated for various agricultural subsidies and incentives under Budget 2027 was crucial in helping farmers manage input costs, including fertilisers, pesticides and seeds.

Meanwhile, padi farmer Azwan Sharif, 38, expressed hope that the RM20 million allocation for land rehabilitation could be extended to farmers in need, including those operating outside designated padi estate projects.

He said clear and transparent implementation mechanisms were essential to ensure the allocation benefited as many eligible farmers as possible, based on their needs and eligibility.

“In addition, the supply of fertilisers, including specific types required for different planting seasons, must continue to receive attention to ensure smooth padi production and help improve yields,” he said.

Another padi farmer, Mohd Farid Ahmad, 40, said Budget 2027 included several initiatives that would benefit farmers like him, particularly the higher IPP and the retention of the ploughing incentive at RM300 per hectare, which has also been extended to Sabah and Sarawak.

He hoped all the announced assistance could be implemented as planned to ensure farmers received the benefits without delay.

“We welcome the assistance announced by the government as it can help ease some of the burden of cultivation costs. We hope implementation will proceed smoothly, including for incentives announced in previous budgets,” he said.

-- BERNAMA