Agricultural subsidy and price support policies

Abstract

Recent findings on the prevalence of poverty in the agricultural foreign sector point to a need to re-examine the agricultural policies of development Malaysia. The Economic Report (1974) estimated that approximately sixty two percent of all farmers and forty eight percent of all farm workers are poor. On a sectorial basis the agricultural sector has the heaviest employment concentration of poverty. A further cause of concern is that the 'poor' has declined not only in relative but also in absolute terms. This paper will review the progress achieved in smallholding agriculture and high-light some of the factors contributing to the slow rate of growth in for agricultural income. The case /compensationary policies which can be adopted will be presented with a view to stimulating discussion on these policies.