LETTER | The Finance Ministry announced on Wednesday (March 11) that petrol and diesel prices in Peninsular Malaysia will rise for the week of March 12–18, with diesel now priced at RM3.92 per litre.

Interim cash assistance for eligible diesel vehicle users under the Budi Diesel Individu and Budi Diesel Agri-Komoditi schemes has been increased from RM200 to RM300. At the same time, subsidised diesel prices for public land transport and goods transport remain at RM1.88 and RM2.15 per litre, respectively, to maintain essential services.

According to The Star, Malaysian vegetable farmers are urging the government to simplify the diesel subsidy application process, as the current verification procedure is slow and discourages many from applying. This means that many farmers who have never applied before may still miss out on the subsidy.

March to July marks the second or “off-season” of rice cultivation in Peninsular Malaysia. Diesel is not only used for tractors but also for water pumps, generators, and other service-based agricultural machinery. As service providers adjust to higher diesel costs, farmers face increased operational expenses, compounding the financial burden during this critical cultivation period.

While maintaining subsidised diesel for the transport sector helps ensure immediate food distribution, the current spike in diesel prices threatens the future of local food production. In the coming three to six months, higher costs could affect harvests, reduce local supply, and undermine Malaysia’s long-term food security.

Under the National Food Security Policy 2021–2025 and the National Agrofood Policy 2021–2030, Malaysia aims to reduce reliance on imports, strengthen local production, and support farmers through modernisation. Easing farmers’ burdens - especially via simplified diesel subsidy procedures - is crucial if the government wants to protect future harvests and ensure sustainable food security.

Increasing the Budi Diesel Agri-Komoditi allocation from RM200 to RM300 is a step in the right direction, but without streamlining the application process and considering off-season cultivation realities, the measure may fall short of shielding farmers during global crises, such as the ongoing West Asia conflict, which continues to put pressure on global food and fuel markets.

The author is an agriculture an algae expert.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.