Cabinet to discuss expanding diesel subsidy in agro sector

 Agriculture and food security minister Mohamad Sabu says the Cabinet meeting tomorrow will also decide if the existing diesel subsidy rate should be increased.

Agriculture and food security minister Mohamad Sabu said the government is studying measures to address the potential increase in fertiliser prices. (Bernama pic)

PUTRAJAYA:

 The Cabinet meeting tomorrow will discuss a proposal to increase and expand diesel subsidies for those in the agriculture sector, including padi farmers, crop farmers and fishermen.

Agriculture and food security minister Mohamad Sabu said the proposal was discussed at the National Economic Action Council (MTEN) meeting this morning as an immediate measure to ease operational cost pressures in the food production sector.

He said the proposed measures included expanding subsidies to more agriculture players through the fleet card system and increasing the existing subsidy rate.

“This proposal will be brought to the Cabinet meeting tomorrow for a decision,” he said at a press conference here.

Mohamad said the government is also studying immediate measures to address the potential increase in fertiliser prices, a key input that could significantly affect padi and vegetable farmers if prices rise.

He also said Putrajaya was exploring alternative sources for fertiliser imports following export restrictions by China, with several others, including Russia, offering supply.

Separately, ministry secretary-general Isham Ishak said Malaysia has a sufficient supply of livestock feed as imports were secured before the West Asia conflict erupted.

However, he said supplies were expected to decline within about a month and would need to be replenished through new imports.

He added that livestock feed was largely imported from countries like Argentina and Brazil. While supply remained adequate for now, the main factor that could affect prices would be transportation costs. - FMT