Review BUDI Diesel eligibility to help young farmers, says Jamawi

Jamawi (third right) during Kebun Dapur Initiative programme here 

KOTA KINABALU: The Federal Government should review the eligibility criteria for the BUDI Diesel programme to enable more young farmers, livestock breeders and food industry entrepreneurs to benefit from the diesel subsidy, Sabah Agriculture, Fisheries and Food Industry Minister Datuk Jamawi Jaafar said.

Jamawi said many young agricultural entrepreneurs, particularly in rural areas, were unable to apply for the subsidy because the vehicles they used for farming activities were not registered in their names.

He said many acquired their vehicles through hire-purchase arrangements offered by private companies or "sambung bayar" (vehicle ownership transfer) agreements instead of conventional bank financing.

"We understand that only those who hold legal ownership of the vehicle and possess valid licences are eligible to claim BUDI Diesel.

"However, at the grassroots level, many young entrepreneurs purchase vehicles through sambung bayar arrangements or financing provided by companies. There are also farmers who do not have bank accounts but are still able to pay their monthly vehicle instalments used for agricultural activities," he told reporters after the Jelajah Kebun Dapur programme in Kiulu yesterday.

Jamawi said some entrepreneurs also obtained financing based on income from commodities such as rubber, but the vehicles remained registered under the financing companies and had yet to be transferred to the actual users.

"These are among the concerns raised by our young people. We have encouraged them to venture into agriculture, padi cultivation, rubber tapping and various other activities.

"When they are not eligible for BUDI Diesel, it somewhat dampens their motivation to remain in the sector," he said.

He said he would meet representatives from the Finance Ministry and the Domestic Trade and Cost of Living Ministry to discuss the matter and convey feedback from agricultural entrepreneurs in Sabah.

He added that state and federal agricultural agencies would also be involved in discussions to ensure the concerns of young farmers were brought to the government's attention.