ALOR SETAR, Nov 3 -- The Kedah government hopes that the federal government will decide on certain amounts of compensation, following the state's sacrifices in maintaining catchment areas and padi fields for the national water and rice supplies.

Menteri Besar Muhammad Sanusi Md Nor said the state government requested that the matter be included in the 2021 Budget which will be tabled in Parliament this Friday, to ease the burden and simultaneously increase the state's revenue.

"It is hoped that the federal government can allocate RM130 million a year for Kedah for the conservation of the forest reserve, while, if the land use for the agricultural lands dedicated to padi cultivation is changed to commercial purposes, can increase the land tax to about RM1.7 billion.

"So, to use the land for rice production for the country, we hope the Federal government appreciates the sacrifices of the Kedah government and allocates a special payment of 10 per cent of the tax value (RM170 million)," he told Bernama, here, today.

He said, apart from providing water supply for Kedah, the catchment area in the Ulu Muda Forest Reserve also supplied water for planting purposes, domestic and industrial use for Penang and Perlis, through three main dams, namely Pedu, Ahning and Muda.

In this regard, he said the sacrifice of most of the land in the state of Kedah to provide water resources and agricultural land for the country’s water and food supplies, should be appropriately compensated.

Meanwhile, Muhammad Sanusi said Kedah also needed special allocations to 'invigorate' the economic sectors including agriculture, construction, tourism, small traders, online business and retail.

"For the agricultural sector for example, we hope that there are special mechanisms and funds for stabilising commodity prices such as rubber.

"In addition, adequate and quality seed allocations are very important to increase padi production, while assistance for the rearing of poultry, ducks, cows, goats should be channeled to qualified B40s," he said.

He said incentive schemes for young farmers and graduates in the form of loans and training should also be provided to reduce the unemployment rate.

-- BERNAMA