BY DEZIREEN GALOH
KUCHING: Sarawak’s agricultural sector is bracing for challenges as a new phased diesel rationing policy, set to take effect on April 1, limits fuel per refuelling despite continued subsidies at RM2.15 per litre.
Loh Siaw Kuei, agricultural director of the Kuching Chinese General Chamber of Commerce, said the move, aimed at curbing abuse and smuggling, is already affecting operations across the state.
“Sarawak’s agriculture is unique. We have vast land, sparse populations, dispersed production sites, and long transport distances,” he added.
“Farms are often in suburban or remote areas, making transport highly diesel-dependent.”
He added that the new rationing, which caps diesel at 50, 100, or 150 litres per vehicle depending on type, could significantly slow down farm logistics.
“Agricultural operations require continuity and timeliness, especially for fresh produce such as vegetables, fruits, and seafood. Any transport restrictions that force frequent trips to refuel will directly impact product freshness and market supply stability,” Loh reiterated.
He pointed out that while the policy does not raise diesel prices, it increases time costs and logistical burdens, particularly for small- and medium-scale farmers and agri-businesses.
Diesel is also essential for water pumps, generators, and other farm machinery; limits could disrupt daily production schedules.
“These fuel constraints will ripple through the supply chain over time, leading to higher transport costs, wholesale price fluctuations, and eventually passing the burden onto consumers,” he said.
He urged the federal government to account for Sarawak’s unique geography and industrial structure when implementing fuel subsidy rationalisation, avoiding a one-size-fits-all approach.
“Policies should be flexible and include dedicated arrangements for agricultural transport to ensure smooth operations and food supply security,” he added.
Without such measures, he cautioned, farmers’ operating costs could rise, agricultural product prices could become unstable, and local food supply could be affected in the long term.
