@AGROBiz January/February 2026 | Page 19

PLANTATION & COMMODITY
January-February. 2026 | @ AGROBiz

PLANTATION & COMMODITY

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Sustaining pepper’ s potential

• The Pepper Farming Sustainability Programme will prioritise premiumgrade pepper production under 13MP.
• The agricommodity sector contributed RM66.1 billion, accounting for 5.2 per cent of Malaysia’ s GDP as of September 2025.
• The BUDI Agri- Commodity initiative continues to reinforce sustainable farming and competitiveness.
SPICE REVOLUTION: The new allocation aims to enhance productivity and competitiveness among pepper smallholders.

THE government has earmarked RM16 million in 2026 to strengthen sustainable pepper cultivation under the first rolling plan of the 13th Malaysia Plan( 13MP), signalling continued support for the spice subsector.

Plantation and Commodities Minister Datuk Dr Noraini Ahmad said the approved allocation would finance the Pepper Farming Sustainability Programme, with a focus on structured new planting initiatives to produce premium-grade pepper.
“ The assistance provided includes the supply of agricultural inputs such

Agri-commodity aid

OVER 21,000 smallholders in Johor have received cash subsidies under the BUDI Agri-Commodity programme, a government initiative that supports farmers who underpin Malaysia’ s agricommodity sector.
Plantation and Commodities Minister Datuk Dr Noraini Ahmad said the programme, implemented under the MADANI Subsidy Assistance( BUDI MADANI) framework, had attracted 29,048 applications as of Jan 31, with submissions still open.
Successful applicants are provided with RM2,400 each to help offset rising operational costs, particularly following the rationalisation of the diesel subsidy.
“ Recipients comprise smallholders cultivating oil palm, rubber, cocoa, pepper and kenaf, subject to meeting the eligibility criteria, including being Malaysian citizens and registered with agencies under the Ministry of Plantation and Commodities( MPC). as fertilisers and dolomite, the provision of incentives for pepper cuttings and support pillars, as well as technical advisory services.
“ During the 12th Malaysia Plan( 12MP) period, a total of 5,531 pepper farmers benefited from this programme, involving a total planted area of 786.7 hectares,” she said when winding up the debate on the motion of thanks for the royal address for her ministry in the Dewan Rakyat today.
She added that support was not limited to new cultivation. Over the same 12MP period, 12,449 farmers managing 2,216 hectares of mature pepper farms received maintenance assistance to
“ The agencies include the Malaysian Palm Oil Board( MPOB), Malaysian Rubber Board( LGM), Malaysian Cocoa Board( LKM), Malaysian Pepper Board( MPB) and the National Kenaf and Tobacco Board( LKTN),” Noraini said during the BUDI Agri-Commodity Plantation Sector programme in Parit Sulong today.
Also in attendance was Johor Islamic Religious Affairs Committee chairman Mohd Fared Mohd Khalid.
Noraini, who serves as the Parit Sulong MP, noted that applicants must also comply with land size limits: up to 4.5 hectares for oil palm and rubber, and 2.5 hectares for cocoa, pepper, and kenaf. Farmers must be actively producing crops and have annual sales of between RM50,000 and RM300,000.
Subsidy recipient Puziah Ma’ an described the assistance as a timely relief.“ I applied just two days ago, and today the assistance has been approved.
enhance productivity and output.
The programme is designed to help farmers manage planting areas more efficiently while improving quality standards and competitiveness in the premium pepper segment. By combining input subsidies with technical advisory services, the initiative seeks to raise farm performance and strengthen income resilience among smallholders.
The continued allocation under 13MP reflects the government’ s commitment to ensuring long-term sustainability within Malaysia’ s pepper industry, particularly as growers face cost pressures and evolving market expectations.
SECTOR SUPPORT: The programme supports smallholders of oil palm, rubber, cocoa, pepper, and kenaf.
It will help cover the costs of replanting oil palm trees that are over 15 years old, which are our family’ s main source of income,” she said.
The monthly RM200 aid, she added, reflects a meaningful government effort to ease smallholders’ financial pressures.
The BUDI Agri-Commodity programme continues to provide vital support for Johor’ s smallholders, reinforcing sustainable production and helping farmers maintain competitiveness in the national plantation and commodity sector.

Commodity growth

THE agricommodity sector contributed RM66.1 billion, representing 5.2 per cent of Malaysia’ s GDP as of Sept 2025, said Plantation and Commodities Minister Datuk Dr Noraini Ahmad.
From Jan to Nov 2025, the sector also accounted for RM180.2 billion, or 12.4 per cent of the country’ s total exports.
Noraini noted ongoing challenges affecting smallholders, including price volatility, diseases, and an ageing workforce. In response, the ministry has conducted extensive stakeholder engagements and is reviewing the National Agro-Commodity Policy 2021 – 2030.
Targeted initiatives include the Pestalotiopsis Leaf Fall Disease( LDP) Control Programme, covering nearly 135,000 hectares of affected rubber plantations, and a consolidation programme to rehabilitate abandoned rubber estates.
Last year, 1,000 hectares were rehabilitated, with plans to restore 6,500 hectares this year, potentially increasing production by 10,000 metric tonnes.
More than 254,000 smallholders have benefited from the Rubber Production Incentive( IPG), with payments exceeding RM534 million. The government has allocated RM171 million annually for 2025 and 2026 to support this initiative.
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