MAFI mulls targeted subsidies, incentives to address rising input costs

MAFI mulls targeted subsidies, incentives to address rising input costs

KUALA LUMPUR,. The Ministry of Agriculture and Food Industries (MAFI) is considering to implement targeted subsidies or incentives to address the issue of rising costs of agricultural inputs, especially fertilisers and pesticides.

Minister Datuk Seri Dr Ronald Kiandee, said the plan proposed by MAFI together with the Domestic Trade and Consumer Affairs Ministry (KPDNHEP) was aimed at helping the affected farmers.

“MAFI and KPDNHEP have always been concerned over the increase in prices for fertilisers and pesticides to ensure that supplies are always sufficient and prices are stable and affordable,” he said during the Minister’s Question Time in the Dewan Rakyat today.

He said this in reply to a question from Datuk Ahmad Nazlan Idris (BN-Jerantut) who wanted to know about the increase in costs of agricultural inputs especially fertilisers which had reached up to 70 per cent, affecting farmers’ income, and what action are being taken to solve the problem.

Ronald said based on discussions and engagements with stakeholders, among the causes identified were policy changes of exporting countries, rising costs of raw materials, logistical disruptions and market speculations.

“When supplies of fertilisers and pesticides drop and demand from farmers remains constant, price increase will occur throughout the supply chain.

“MAFI and KPDNHEP have tabled the proposed solutions for consideration by the Cabinet on Nov 12, emphasising that any initiatives, interventions and programmes to be undertaken must be able to create an impact on the people in the long run,” he said.

— BERNAMA

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