Kuala Lumpur:The Ministry of Plantation and Commodities (KPK) has approved a proposal to establish a disaster and disease control fund for the agri-commodity sector. This fund is one of the main initiatives in Budget 2027 aimed at reducing losses for smallholders due to natural disasters, pest attacks, and crop diseases.

According to BERNAMA News Agency, the fund is designed to enhance the government's capacity for quicker and more systematic responses to crop-related disasters, with a particular focus on oil palm, rubber, and pepper industries.

The ministry addressed inquiries from Hassan Saad (PN-Baling) regarding an income protection scheme for smallholders affected by the El Nino phenomenon. In a statement on the Parliament's website, KPK noted that no such scheme currently exists within the agribusiness sector.

KPK is implementing various programs to maintain productivity and support the stability and resilience of smallholder income. While these programs do not specifically compensate for income loss due to El Nino, they aim to sustain the overall welfare of smallholders by addressing issues like commodity price volatility, input costs, declining productivity, and crop diseases.

Among the assistance programs is BUDI Agri-Komoditi, which provides RM400 to eligible private smallholders. As of September 2026, 431,089 smallholders engaged in cultivating oil palm, rubber, cocoa, pepper, and kenaf were identified as eligible for assistance, with 227,378 applications approved.

For rubber smallholders, the 2026 Monsoon Season Aid (BMT) of RM800 is also available to those whose income is affected by their inability to tap rubber during the rainy season.