03/10/2012 (Borneo Post) - The Federation of Malaysian Consumers Association (Fomca) has highlighted several agricultural concerns arising from Budget 2013, citing issues relating to sustainability in food prices and food security areas.

Fomca looked forward to an improvement in food security but was disappointed that a large chunk of the allocation had gone to improve the plantation sector, particularly to the palm oil industry.

To recap, a total of RM5.8 billion was allocated to the Ministry of Agriculture and Agro-based Industry under Budget 2013.

However, only about RM 105 million was allocated for actual food yield improvements such as rice, vegetables and fruits.

In comparison, about RM 432 million – which was about four times more – was allocated to improve yield in the palm oil sector.

“Although there was mention about the expected output from the increase in paddy acreage but there was no mention on how much it will reduce our dependency on rice imports,” Fomca outlined.

“Most of the allocation is short-term to temporarily offset their current financial shortcomings such as insurance and repairing homes for fishermen.

Subsidies for seeds, fertilisers and price are often enjoyed by main distributors and fertiliser manufacturers, but not farmers.” Fomca welcomed the takaful insurance for small holders as it is believed that it will soften the impact due to loss of income.

“However, the terms and conditions need to be clarified and made clear, and should also cover loss of production or income due to natural disasters,” it said.

The AZAM Tani project was also a positive move made by the government, added Fomca, but more youths and young entrepreneurs must be brought into the agriculture sector.

“The food supply chain should be liberalised to ensure that there are no anti-competitive practices which would result in food price distortion,” it highlighted, adding that allocation for Research and Development to enhance productivity should have been added to ensure that food crop production should be a viable and sustainable industry that can attract the young.

“Efforts are also needed for land reform, especially on ‘idle’ land to make agriculture sustainable for investment.

Efforts are needed to address concerns with impact of climate change on agriculture productivity. There should be enhanced efforts towards integrated sustainable agriculture approach.” Fomca also outlined concerns with lack of affordable credit expansion to farmers.