Rabat:The RM2.62 billion aid allocated for paddy farmers and RM300 million for agrofood projects under Budget 2027 is aimed at boosting domestic food supplies and ensuring affordable prices for consumers.

According to BERNAMA News Agency, Federation of Malaysian Consumers Associations (FOMCA) CEO Dr. Saravanan Thambirajah highlighted that the assistance, which includes approximately RM4,300 per hectare and an increase in the harvesting incentive from RM50 to RM100 per hectare per season, is crucial to help farmers manage rising production costs.

Dr. Saravanan emphasized the importance of the proposed five-season paddy planting program over two years, which could significantly increase domestic rice production if supported by adequate irrigation, stable water supply, modern technology, and proper planning. He urged the government to set measurable production targets and regularly assess the assistance's effectiveness in boosting yields, reducing costs, and enhancing rice availability.

FOMCA also welcomed the RM300 million allocation for agrofood projects and financing facilities worth over RM1 billion for agropreneurs. Dr. Saravanan stressed the need for close cooperation between federal and state governments to address land availability, infrastructure, logistics, and food distribution challenges. He insisted that financing should be accessible to small-scale farmers, young agropreneurs, and genuine food producers, not just large operators.

Putra Business School lecturer Prof. Datuk Dr. Nasir Shamsudin commented that the RM300 million federal and state collaboration is a positive step but should leverage each state's competitive advantages, market potential, and economic returns. He added that the RM1 billion financing facilities should include technical support and market access to ensure business viability, with success measured by increased productivity, reduced costs, and lesser dependence on imports.

Prof. Nasir also noted that the RM2.62 billion allocation for paddy farmers signifies the government's commitment to securing their incomes and strengthening national rice supply security, especially with the current rice self-sufficiency ratio at 52.9%. He suggested that subsidy effectiveness should be evaluated based on productivity gains and recommended shifting from input-based support to performance, output, and sustainable farming practice-based incentives.