Budget 2026 : PeSAWAH Calls For Immediate Implementation Of New Incentives

ALOR SETAR, Oct 11 (Bernama) -- The Malaysian Padi Farmers Brotherhood Association (PeSAWAH) has called for the immediate implementation of newly announced incentives in Budget 2026, which include an increase in ploughing incentives to RM160 per hectare and a new harvesting incentive of RM50 per hectare.

Its chairman, Abdul Rashid Yob, said these incentives are highly anticipated by farmers who have long struggled with rising cultivation costs.

Furthermore, he said PeSAWAH hopes the allocation of approximately RM2.62 billion for various subsidies and aid to farmers will be detailed to ensure the benefits reach them directly.

"Increases in incentives are often accompanied by rising input and service costs, leaving farmers' net profit largely unchanged," Abdul Rashid said in a statement today.

He emphasised that the padi industry requires comprehensive structural reforms, particularly in the price determination mechanism of padi and rice, to ensure it is fairer and more transparent.

"PeSAWAH is prepared to collaborate with the government to realise structural reforms to ensure the sustainability of the agricultural sector and the nation's food security," he said.

During the Budget 2026 presentation yesterday, Prime Minister Datuk Seri Anwar Ibrahim announced that the MADANI government is increasing ploughing incentives to RM160 per hectare per season and pesticide incentives to RM300 per hectare per season.

The government also introduced a new Padi Harvesting Incentive of RM50 per hectare per season to help cover diesel costs. 

The Prime Minister added that these measures are estimated to increase the total assistance for farmers to approximately RM4,300 per hectare each season, up from the previous RM3,790.

Meanwhile, Kelantan Farmers Association (PESAK) chairman Zuha Ismail said the assistance is timely and highly meaningful for more than 7,000 padi farmers across the state who depend entirely on rice cultivation for their livelihood.

He said the announcement serves as a lifeline for farmers who often face challenges, especially prolonged irrigation problems that affect their yields.

“In Kelantan, some farmers have suffered heavy losses when only three out of 10 hectares of padi planted could be harvested. The assistance comes at the right time as production costs continue to rise, including land preparation fees that now have to be paid in cash,” he told Bernama.

Zuha said farmers also face high fuel expenses, using around 50 litres a week to operate tube well engines, and hoped that the aid would help ease their financial burden.

“Typically, the cost for 0.4 hectares is about RM1,550. We are grateful to the government for its concern over the farmers’ hardships,” he said.

-- BERNAMA