@ AGROBiz | March-April. 2026

The ministry had taken note of concerns about the impact of diesel price increases on farmers, noting that external pressures, such as geopolitical tensions and subsidy rationalisation, continued to influence production costs. In response, several interventions were implemented in stages to ease the burden on paddy farmers.

Among the early measures introduced were enhancements to existing assistance schemes. The ploughing subsidy was increased from RM100 to RM160 per hectare, alongside the introduction of a RM50 per hectare harvesting wage assistance. These steps were aimed at cushioning farmers against rising input and labour costs.

Weather-related challenges also remained a concern, particularly in northern regions affected by prolonged dry spells. Mitigation efforts included cloud seeding operations in February 2026 and the adoption of Dry Direct Seeding methods in areas with limited water supply.

Affected farmers were also assessed for support under the Paddy Crop Disaster Fund( Tabung Bencana Tanaman Padi) and the Paddy Crop Takaful Scheme( Skim Takaful Tanaman Padi).

VOICES OF THE FIELD

At the same time, the ministry stepped up engagement with industry players, not only on cost pressures but also on broader structural issues. In Kedah, an engagement session was held with around 50 farmers from various granary areas under the Muda Agricultural Development Authority( MADA) to address concerns over rice quality.

The session served as a platform for farmers to provide direct feedback, particularly on challenges faced when marketing their harvest.

As part of the session, Padiberas Nasional Berhad( BERNAS) provided a briefing on the rice quality assessment process at the factory level, aimed at improving farm-

FARMER FEEDBACK: Farmers speaking up during the engagement session.

• MAFS has introduced phased measures, including higher subsidies and new assistance, to ease rising operational costs for paddy farmers.

• The steps came amid diesel price hikes and broader global uncertainties affecting the sector.

• Malaysia is planning on to strengthen research collaboration with the US on sweet corn and soybeans.

GOVERNMENT SUPPORT: The new, enhanced subsidies and targeted assistance were introduced to ease financial burdens on farmers.

“ Despite ongoing cost pressures, the ministry maintained that key input subsidies for seeds, fertilisers and pesticides would continue as scheduled.”

ers’ understanding of grading mechanisms. The feedback gathered is expected to support the ministry in refining policies related to rice quality implementation, while safeguarding farmer interests.

In parallel, monitoring efforts were intensified through the mobilisation of the Northern Zone Rice and Rice Regulatory Task Force, which began operations in mid-February 2026. The task force was deployed to oversee the implementation of rice quality standards for the current planting season, with enforcement measures set to be strengthened.

At the policy level, a post-Cabinet decision in March approved the establishment of the National Paddy and Rice Industry

Consultation Committee. The platform brings together stakeholders across the value chain, including farmers, associations and non-governmental organisations, to facilitate more structured discussions on industry issues.

This was complemented by further engagement sessions involving fertiliser manufacturers and farmer representatives to gather feedback on the impact of global developments, particularly the conflict in West Asia. A special internal committee was also formed to assess the broader implications of rising global oil prices and to develop recommendations for the Ministry of Finance( MOF).

Despite ongoing cost pressures, the ministry maintained that key input subsidies for seeds, fertilisers and pesticides would continue as scheduled. It also clarified that the RM600“ waiting-for-harvest” incentive was a one-off measure for the 2023 and 2024 planting seasons and was not continued in subsequent budgets.

Moving forward, the ministry signalled a continued focus on coordination, monitoring and data-driven policymaking to safeguard farmer welfare while ensuring the stability of the country’ s rice supply chain.- @ AGROBiz