Padi farmers’ group concerned about rising diesel costs

2026-03-29 - 03:40

Padi cultivation has higher operating costs than other crops because its production cycle is shorter. KUALA LUMPUR: A padi farmers’ group says its members are increasingly worried about their ability to cope with rising costs due to the continued increase in diesel prices. Pertubuhan Persaudaraan Pesawah Malaysia (PeSawah) said it was concerned that the price hikes will push up padi farmers’ operating costs, potentially affecting the industry’s sustainability and placing further strain on farmers. PeSawah chairman Abdul Rashid Yob said many padi farmers are already forced to find additional sources of income as their earnings from paddy farming alone are not enough to sustain their families. “Some work as security guards, run small businesses, or take on other jobs to support their families. Relying solely on income from padi fields is simply not sufficient at present,” he told FMT. The price of diesel has increased by RM2.40 over the past three weeks due to energy supply constraints caused by the war in the Middle East, bringing the current price to about RM5.52 per litre. According to Rashid, the recent price increases follow the diesel subsidy rationalisation in 2024 which raised diesel prices in Peninsular Malaysia by RM1.20 – from RM2.15 to RM3.35 per litre. He said although machinery operators have yet to raise their service charges, increases are expected in the near future. Rashid said padi cultivation has higher operating costs than other crops because its production cycle is shorter. He proposed a comprehensive reform of the padi industry, including increasing the padi floor price (currently at RM1,500 per metric tonne) and lowering input costs such as seeds. “While various subsidies are being provided to the agricultural sector, what farmers really need are assurances that they can continue farming profitably,” he said. “If there is no profit, it is not worthwhile for us to continue farming.”