The government raises padi ploughing incentives and diesel cash aid, allocating millions to support farmers and targeted groups amid global energy price pressures.
KUALA LUMPUR: The government has approved a significant increase in the Ploughing Incentive for Padi Farmers (IPKP) rate for the 2026 planting season, raising it from RM160 to RM300 per hectare.
Economy Minister Akmal Nasrullah Mohd Nasir announced the measure as an immediate step to manage the global energy crisis while protecting the livelihood of padi farmers.
The enhanced incentive, involving an additional allocation of about RM40 million, is expected to benefit nearly 200,000 padi farmers, some of whom will begin planting this month.
Akmal Nasrullah noted that the MADANI Government had also introduced a harvesting incentive of RM50 per hectare per season last year to help with rising input costs.
In a parallel move to improve diesel assistance, the government has agreed to increase the BUDI Agri-Commodities cash aid from RM300 to RM400 per month.
This new rate will benefit more than 200,000 farmers and smallholders, involving an additional allocation of RM20 million per month.
The BUDI Diesel Individual cash assistance rate for eligible Malaysians has also been raised from RM300 to RM400 per month, aiding about 150,000 individual diesel vehicle owners in Peninsular Malaysia.
The Finance Ministry will monitor the implementation of this initiative, which involves an extra RM15 million per month in allocation.
Akmal Nasrullah stated that the government, together with PETRONAS and relevant parties, is working to prioritise energy supply, including the arrival of supply vessels in Pengerang, Johor, in mid-April.
