KUALA LUMPUR, Sept. 6 -- As Malaysia's paddy farmers grapple with delays in subsidised fertiliser supplies, one of the country's key agricultural organisations is undergoing a major overhaul after years of financial losses.

Pertubuhan Peladang Kebangsaan (Nafas) - the national farmers' organisation that supports agricultural cooperatives and distributes farm inputs - is shutting nine of its 16 subsidiaries and refocusing on agricultural inputs, its core business which accounts for more than 95 per cent of its revenue.

The restructuring comes as the Malaysian Anti-Corruption Commission investigates delays in the distribution of supplementary compound fertiliser affecting about 38,000 paddy farmers in Kedah's Muda Agricultural Development...