KUALA LUMPUR: The impressive RM6.5 billion allocation for the agricultural sector is expected to increase the income of farmers and smallholders.
National Smallholders Association president Datuk Alisak Ambia expressed gratitude over the focus given on the development of smallholders by the government.
He said previously smallholders experienced financial constraints and particularly affected by the increase in price for fertilisers.
“Back then, smallholders and farmers would have to absorb the high increase in planting cost including maintenance. It was a situation which had more or less affected their income.”
Prime Minister Datuk Seri Najib Razak said RM2.3 billion from the allocation would be used as incentives for the purchase of fertilisers and production input for fishermen, rubber smallholders and farmers.
“Such an incentive is important as most smallholders are not financially sound and only dabble in individual farming. The announcement on the biggest allocation to date for the sector is a boon for all in the industry .”
Alisak said the allocation would indirectly improve the standard of living and income among smallholders.
Under the same allocation, RM500 million would be used to improve irrigation infrastructure in farms and upgrade plantation roads.
At the same time, another RM200 million would be reserved for replanting rubber trees and provide infrastructures to boost rubber production.