PETALING JAYA: The government has allocated RM1.4 billion to strengthen the country’s rice industry through four major initiatives under Budget 2026, Prime Minister Datuk Seri Anwar Ibrahim said in Parliament today.
The allocation will fund the next phase of the Tertiary Irrigation System, the Jeniang Water Transfer Project, the rehabilitation of problematic paddy fields, and the provision of foliar fertiliser for paddy farmers.
Anwar, who is also the Finance Minister, said the upcoming phase of the Tertiary Irrigation System is expected to be completed in stages until the second quarter of 2030.
“The Jeniang Water Transfer Project will begin next year with an estimated cost of RM1.28 billion. It involves the construction of a new river to support irrigation for the Five Seasons in Two Years Paddy Planting Programme.
“Problematic paddy lands will be rehabilitated and infrastructure upgraded, including adopting a modern paddy field model, with an allocation of RM100 million.
“To boost yields, 6,400 paddy farmers will receive foliar fertiliser and soil fertility enhancers under a RM20 million allocation,” said Anwar.
He added that the Madani government has collaborated with all state governments to optimise land use for agricultural projects, with over 360 initiatives implemented covering crops, livestock, fisheries, and agricultural automation.
These include onion farming in Perak and Kelantan, rock melon cultivation and shellfish and freshwater prawn farming in Melaka, cattle farming in Pahang, and meat sheep rearing in Johor.
The Finance Minister also announced an RM300 million allocation to support grain corn cultivation, aquaculture, and paddy farming activities in Sabah and Sarawak.
Additionally, RM2.62 billion has been set aside for various subsidies and aid for paddy farmers, including price support, planting subsidies, fertiliser and seed subsidies, as well as paddy production incentives.
“Starting this year, the Madani government has increased the ploughing and pesticide incentives to RM160 and RM300 per hectare per season, respectively. A new incentive, the Paddy Harvesting Incentive of RM50 per hectare per season, has also been introduced to help offset diesel costs for harvesters.
“It is estimated that each paddy farmer will now receive about RM4,300 per hectare per season, up from RM3,790 previously.”
