Cultivating security for farmers: The handover of the Paddy Crop Takaful Scheme funds by Agriculture and Food Security Ministry secretary-general Datuk Lokman Hakim Ali (right) to Agrobank chairman Datuk Yunos Abd Ghani. Witnessing this occasion were Prime Minister Datuk Seri Anwar Ibrahim, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Deputy Minister Datuk Arthur Joseph Kurup, and Agrobank president and chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin (front row, left).
SERDANG: Paddy farmers will now be insured of up to RM3,000 for natural disasters.
The Agriculture and Food Security Ministry (KPKM), through Agrobank, has launched the Agrofood Takaful Protection Scheme: Paddy Crop Takaful Scheme (STTP) that will benefit paddy farmers in the country.
The first of its kind in Malaysia, the STTP aims to alleviate the financial burden on farmers caused by natural disasters such as floods and droughts, or whose crops are attacked by crop diseases and pests.
Recovery costs can be overwhelming.
The protection scheme can now provide peace of mind for paddy farmers, helping them navigate the uncertainties and challenges posed by natural disasters.
In a statement, Agrobank’s president and chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin said: “This takaful protection offers up to RM3,000 for natural disasters while for pest insects and crop diseases, protection of up to RM1,500 from the original protection amount per season per hectare for each farmer – a higher amount compared to the existing disaster fund.”
“For the first year of its introduction, the government fully bears the premium payment of RM120 per year for each hectare for two planting seasons,” he added.
The STTP is recognised as a pioneering Shariah-compliant protection plan introduced in the South-East Asian region – further showcasing the government’s commitment to supporting farmers across the country in times of natural disasters while also bolstering the nation’s food security.
The scheme was part of Budget 2024 announced by Prime Minister Datuk Seri Anwar Ibrahim, with an initial fund of RM50mil to provide protection to farmers.
The STTP was launched on Saturday (Sept 14) during the Malaysia Agriculture, Horticulture and Agrotourism Exhibition (MAHA) 2024 held at the Malaysia Agro Exposition Park Serdang (MAEPS) in Selangor.
The protection scheme is open to all individual farmers nationwide who are registered with agencies recognised by KPKM.
The registration method is also simple: individual farmers only need to obtain the takaful form at the nearest Area Farmers’ Organisation office.
MAHA 2024 is taking place from Sept 11 to Sept 22.
Agrobank’s main pavilion is situated in Hall A, and Hall D2 for Agro Youth for visitors or businesses to find out more about the offerings by the financial institution.
It is also hosting various programmes and activities with prizes to be given away.
Agrobank is a leader in agriculture financing, with a primary focus in charting the growth and development of the country’s agriculture industry by offering shariah-compliant products and solutions across various customer segments.
It offers a comprehensive suite of financing solutions for the agriculture community, including upstream activities related to primary food and commodities-based agriculture activities to downstream activities such as processing, marketing and the distribution of agricultural products.
To know more about the Paddy Crop Takaful Scheme, visit www.agrobank.com.my or the nearest Agrobank branch.
