KUALA TERENGGANU: The Budi Madani diesel subsidy programme is expected help stabilise the local food supply and have a positive impact on the country’s agriculture sector, says an academic.
The dean of the bioresources and food industry faculty at Universiti Sultan Zainal Abidin, Prof Dr Hafizan Juahir, said the RM200 monthly assistance to be provided through the programme could reduce operational costs for small-scale farmers and smallholders who rely on diesel-powered vehicles.
“This will, in turn, increase their profits, help them operate more efficiently and enhance their farm productivity.
“The increase in productivity will provide better income for the group and create opportunities to invest in new equipment or technology,” he said, Bernama reported.
Prof Hafizan said the situation would enhance farmers’ competitiveness when facing more prominent industry players.
“With lower diesel costs, farmers and smallholders can offer their products at more competitive prices in the market.
“The aid provides direct financial support and encourages them to continue farming. In return, this can contribute to the stability of local food supply,” he said.
However, he expressed concern about potential weaknesses in the programme’s implementation, such as a complicated and time-consuming application process, which could make it difficult for eligible recipients to receive the aid.
Oil palm plantation owner Abdul Aziz Yusuf said the Budi Madani programme would help ease his burden as he currently spends nearly RM300 on diesel for his 4x4 vehicle.
Besides transporting palm fruits harvested from the 12ha plantation in Kampung Rahmat, Setiu, the 55-year-old also earns extra income by transporting palm fruits for other villagers to a mill located about 10km away.
“I also transport about 10 Felda workers into the plantation. I use the vehicle every day, including on weekends. This aid will significantly reduce my monthly diesel costs,” he said.
Farmer Mohd Jefri Abd Rahman, 47, from Kampung Padang Tapong, Besut, said the aid would lower the operating costs of his farm, which relies on a fertigation system.
Having been involved in cucumber farming for six years, he said direct subsidy distribution to target groups like himself was the best approach to prevent leakage in diesel purchases.
“I use a 4x4 vehicle to market cucumbers around Besut. Currently, my average diesel cost is around RM500 a month.
“This assistance is greatly appreciated, especially since cucumber sales can be unpredictable. Sometimes, prices are so low that my income is reduced, yet the diesel usage remains the same.”
Poultry farmer Muhammad Nor Syahidin Abu Hassan, 33, from Kampung Temala Tanjung in Marang said the aid would benefit him in dealing with the unstable chicken prices in the market.
“Chicken prices always fluctuate, so when prices drop, we farmers have to bear higher operating costs. This aid will ease some of our burden and gives us hope to continue farming,” he said.
The Finance Ministry recently announced that private diesel vehicle owners, including individuals, small-scale farmers and smallholders from the B40 and M40 groups in Peninsular Malaysia, can apply for cash assistance under the Budi Madani programme starting May 28.
