KUALA LUMPUR: The Ministry of Agriculture and Food Security, in collaboration with Agrobank, has introduced the Agrofood Takaful Protection Scheme: Paddy Crop Takaful Scheme (STTP), marking Malaysia's first Shariah-compliant insurance for paddy farmers.
The initiative was first announced by Prime Minister Datuk Seri Anwar Ibrahim under the 2024 Budget, with an initial allocation of RM50 million to support farmers.
The scheme is open to all registered individual farmers across Malaysia, with registration made easier by allowing the farmers to collect the takaful form at their nearest Area Farmers' Organisation office.
Agrobank said the initiative highlights the government's commitment to assisting farmers in mitigating natural disasters and reinforcing the nation's food supply chain through programmes introduced by the ministry and the bank.
Agrobank president and chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin said the takaful protection provides coverage of up to RM3,000 for natural disasters.
He added that in cases of pest infestations and crop diseases, farmers are eligible for protection of up to RM1,500 per season per hectare, which is higher than the current 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.