State escalates agriculture machinery diesel subsidy issue to federal govt

4 Jun 2026, 11:20 AM
State escalates agriculture machinery diesel subsidy issue to federal govt
State escalates agriculture machinery diesel subsidy issue to federal govt

TANJONG KARANG, June 4 — The Selangor government has highlighted to Putrajaya increased operational costs faced by agriculture machinery owners in the state due to retargeted diesel subsidies, said state executive councillor for infrastructure and agriculture Dato’ Izham Hashim.

He said this is as agriculture machinery isn’t included in the BUDI Madani subsidy plan, adding that nearly all agricultural activity depends on the use of machinery as main equipment and mode of transport, which makes diesel an important component of production costs.

“We have informed this to the top quarters and government (to see) how to help (with) the subsidy scheme.

“This is to help machinery (owners) and to reduce food production costs. This involves food security, which needs prices to be maintained.

“I have (escalated the matter) and we will do it again. Even at the state level, we’re looking at the second package, and we will relook this diesel-related issue to help ease these farmers’ burdens,” he said when met after a ceremony to hand over agriculture machinery to Pertubuhan Peladang Negeri Selangor (PPNS) in Sungai Burong here today.

State executive councillor for infrastructure and agriculture Dato’ Izham Hashim presents a mock key for an agricultural machine to representatives of Pertubuhan Peladang Negeri Selangor (PPNS), during a ceremony held at the PPNS Padi Seed Production Centre in Sungai Burong, Tanjong Karang, on June 4, 2026. — Picture by MOHD KHAIRUL HELMY MOHD DIN/MEDIA SELANGOR

In March, the federal government was reportedly considering proposals to increase and expand diesel subsidies to agriculture industry players, including farmers and fishermen.

Agriculture and Food Security Minister Datuk Seri Mohamad Sabu reportedly said the proposals were discussed at a National Economic Action Council (MTEN) meeting to reduce operational costs in the food production sector.

Meanwhile, at today’s ceremony, Izham spent about 30 minutes touring the PPNS Padi Seed Production Centre, which reopened after being shut in 2018.

He handed over three mini harvesters to PPNS to reduce yield loss and land damage, thus strengthening padi harvesting in Selangor’s northern region.

“It has been two seasons since they resumed operations, with reserves of up to 600 tonnes of padi seeds. They spent RM13.7 million to restore this place and succeeded in producing quality padi seeds,” Izham said.

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