ALOR STAR: Carbon credits trade could be explored as a way to offset Kedah's economic losses incurred from preserving padi fields.

Muda Agriculture Development Authority (Mada) chairman Datuk Dr Ismail Salleh said the move would be an alternative solution to Menteri Besar Datuk Seri Muhammad Sanusi Md Nor's request of RM200 million compensation from the federal government to forgo development on Mada's padi fields dated back to 2008.

He said while Kedah government's demand is relevant, it is imperative to explore options to offset economic opportunity lost for preserving the padi fields to protect the nation's food security.

"My suggestion, as an alternative, is to declare all 100,000ha of Mada areas and outside of Mada through Mada Plus as gazetted land, immediately.

"After that, the federal government should assist the state in obtaining payment for carbon credits for the preservation of padi fields and forests.

"Make Kedah an example of a state generating revenue from carbon credits. This way, not only do we continue to cultivate padi, but generating revenue derived from carbon credit. It's a win-win situation," he said when contacted today.

Dr Ismail stressed the importance of prioritizing agriculture, given that Mada plays a role in catering to 40 per cent of the country staple food's needs.

"We stand to lose the yield of 5 tonnes of rice yield per 10,000ha for two cycles, totalling 100,000 metric tonnes per year, which is 10 per cent of Mada's rice production. This is a significant loss to the country's food security.

"The federal government will also spend over RM5 billion on infrastructure for the proposed two planting cycles in every two years project. If the MB's request persists, this project will have to be reconsidered because one component of this project is the construction of tertiary drainage which may involve padi fields area earmarked for development," he added.

On Saturday, Prime Minister Datuk Seri Anwar Ibrahim said the federal government would look into the state government's application to release over 10,000ha of padi fields under Mada for housing and commercial use.

On Sunday, Sanusi said Kedah is missing out on an RM100 million revenue annually from preserving padi fields under Mada.

He said about 10,000ha of Mada's padi fields were earmarked for housing development under district local plans. Another 400ha of padi fields have been allocated for industrial and commercial purposes.

Therefore, he said Kedah is seeking fiscal assistance from the federal government to compensate for losses in preserving the padi fields.

https://www.nst.com.my/news/nation/2024/05/1047478/mada-chairman-advocates-carbon-credits-trade-offset-padi-preservation