Sarawak considers targeted fertiliser subsidy amid global price surge

KUCHING (March 27): Sarawak is considering targeted fertiliser subsidies while accelerating longer-term agricultural reforms amid rising global price pressures driven by ongoing geopolitical conflicts, said Dato Sri Dr Stephen Rundi Utom.

The State Food Industry, Commodities and Regional Development Minister said rising fertiliser prices, fuelled by global tensions involving major players, highlight the need for both immediate intervention and structural changes to strengthen the state’s agriculture sector.

“The Sarawak government remains attentive to any global pressures affecting the agriculture sector, including rising global fertiliser prices.

“The increase in fertiliser prices due to geopolitical uncertainties indicates that short-term measures such as targeted subsidies may be necessary to ease the immediate burden on farmers,” he told The Borneo Post.

At the same time, Dr Rundi said the situation underscores the need for a more comprehensive and forward-looking agricultural strategy aligned with the National Agrofood Policy and Sarawak’s Post Covid-19 Development Strategy (PCDS) 2030.

He said the state is focusing on improving input efficiency, expanding precision farming, and reducing reliance on imported inputs.

“Dependence on imported fertiliser is one of the key factors exposing the agriculture sector to global price fluctuations,” he said.

As part of longer-term measures, he said Sarawak is exploring local fertiliser production, including organic and biofertilisers, and the use of oil palm biomass as alternative inputs.

He added that efforts are also underway to attract investment in downstream agriculture and strengthen collaboration with the private sector and research institutions.

“These initiatives align with Sarawak’s aspiration to become a high-value resource-based and sustainable economy,” he said.

On food prices, Dr Rundi acknowledged that higher input costs could pressure production costs but said mitigation measures are in place, including price controls, subsidies for essential goods, productivity improvements, and stronger supply chains.

He said the government is also committed to safeguarding smallholders and rural farmers through targeted assistance.

“This includes targeted subsidies based on coordinated farmer databases, digitalised aid distribution systems to reduce leakages, multi-layered monitoring involving audits and field monitoring, and collaboration with district offices and farmers’ organisations” he said.

Dr Rundi stressed that farmers remain the backbone of Sarawak’s food security and said continuous support will be provided in the form of financial aid, technical assistance and training.

He also encouraged farmers to adopt more efficient methods, including organic fertiliser use, and to take full advantage of government support programmes.

“Through close collaboration between all parties, Sarawak will continue to ensure sufficient, resilient and sustainable food supply,” he said.