KUALA LUMPUR, July 15 (Reuters) - Malaysia will allocate 100 million ringgit ($21.4 million) in additional subsidies for farmers working for the Federal Land Development Authority (FELDA), a state palm-oil plantation agency, Prime Minister Anwar Ibrahim said.

The subsidies are aimed at covering rising operational costs for the farmers, also known as Felda settlers, following diesel subsidy cuts in much of the country last month, Anwar said in an announcement on Sunday. ($1 = 4.6670 ringgit) (Reporting by Rozanna Latiff; Editing by John Mair)