PUTRAJAYA, Oct 10 – The Ministry of Agriculture and Food Security (KPKM) has been allocated RM6.92 billion under Budget 2027, marking an RM50.31 million increase from RM6.87 billion previously, to strengthen national food security and improve the welfare of target groups.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu confirmed in an official statement on Saturday, October 10, 2026, that operating expenses account for RM4.85 billion of the total, while development expenses receive RM2.07 billion.
The increased funding is structured to boost domestic agricultural yields, lower reliance on food imports, and safeguard local production against climate change challenges under the National Agro-Food Policy 2021-2030 (DAN 2.0) and the National Food Security Policy 2030 (DKMN 2030).
Subsidies, Agro MADANI Sales, and Fisheries Support
The allocation covers several target incentives, financing programs, and market interventions:
- Padi Subsidies & Harvesting Incentives: An allocation of RM2.62 billion will provide seed, fertilizer, pesticide, plowing wage, and rice price subsidies valued around RM4,300 per farmer. The Padi Harvesting Incentive (IPP) doubles from RM50 to RM100 per hectare per season, while the Plowing Incentive for Farmers (IPKP) of RM300 per hectare per season is extended to Sabah and Sarawak.
- State Cooperation & Agro Financing: RM300 million is earmarked for the National Agro-Food Empowerment Programme (PPAN) to boost community-level production, alongside RM1 billion in financing through Agrobank, Bank Rakyat, and the Malaysian Cooperative Commission for modern agricultural tech adoption.
- Consumer Relief Initiatives: A total of 5,000 Agro MADANI Sales events will offer fresh produce at discounts up to 30 per cent, while Sumbangan Asas Rahmah (SARA) credits will be accepted across 216 FAMA farmers’ markets (tamu) nationwide.
- Fisheries Sector Assistance: The fisheries sector receives RM178 million, including catch incentives, a monthly Cost of Living Allowance up to RM300, and subsidized diesel maintained at RM1.65 per liter. An additional RM30 million will fund a regularisation process expanding special boat license holders from 17,000 to 20,000 fishermen.
Mohamad emphasized that KPKM is committed to good governance and efficient implementation to ensure the allocation delivers maximum impact to farmers, breeders, and fishermen nationwide.
–NMT
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