Business : Agri-commodity Disaster Fund Among Main Initiatives In Budget 2027 -- KPK

08/10/2026 11:25 PM

KUALA LUMPUR, Oct 8 (Bernama) -- The Ministry of Plantation and Commodities (KPK) has accepted the proposal to establish a disaster and disease control fund for the agri-commodity sector as one of Budget 2027’s main initiatives to help reduce losses for smallholders due to natural disasters, pest attacks, and crop diseases.

According to the KPK, the fund will strengthen the government’s ability to respond faster and more systematically to crop-related disasters, particularly those affecting oil palm, rubber, and pepper.

In a written answer posted on the Parliament’s website, the ministry said that within the agribusiness sector, there is currently no income protection scheme introduced for smallholders affected by the El Nino phenomenon.

KPK was responding to Hassan Saad (PN-Baling), who asked whether the government would introduce an income protection scheme for smallholders affected by El Nino.

The ministry said it is currently implementing various programs to ensure continuous productivity and support the stability and resilience of smallholder income.

“Implementation of these programmes and future planning are ongoing efforts by KPK to assist smallholders in facing a range of challenges that could affect income, including commodity price volatility, input costs, declining productivity, and crop diseases.

“Although the programmes are not a dedicated income loss compensation scheme specifically for El Nino, the benefits of the programmes are to support the overall sustainability and welfare of smallholders,” it said.

KPK said among the assistance programmes currently implemented is BUDI Agri-Komoditi, which provides RM400 in cash to eligible private smallholders.

As of September 2026, 431,089 smallholders cultivating oil palm, rubber, cocoa, pepper, and kenaf were identified as eligible to receive the assistance, with 227,378 applications approved.

For rubber smallholders, KPK said the 2026 Monsoon Season Aid (BMT) of RM800 will also help those whose income is affected by the inability to tap rubber during the rainy season.

-- BERNAMA

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