KUBANG PASU: The national Farmers' Organisation Authority (LPP) has lauded the government's decision to allocate RM2.78 billion in subsidies, aid and incentives for padi farmers and fishermen in the 2025 Budget, a slight increase compared with RM2.6 billion in the last budget
LPP chairman Datuk Mahfuz Omar welcomed the move, saying that the funds would be effectively utilised by the relevant agricultural agencies and players, particularly padi farmers.
He said the move, along with the introduction of the Padi Crop Takaful Scheme by Agrobank, with full support from the Agriculture and Food Security Ministry, would strengthen the livelihood of padi farmers.
"The allocation of over RM2.7 billion is highly appreciated by the farmers and warmly received. In addition, the RM50 million allocation for padi crop takaful scheme will ensure that in the future, when disasters occur, farmers won't need to solely rely on government aid, but can turn to takaful companies.
"These companies will conduct their own assessments, and in some cases, the payouts may exceed what the government can provide. The initial contribution is fully covered by the government," he said at a press conference after presenting agriculture machinery to farmers in Kampung Asun here today.
Mahfuz also praised the overall inclusiveness of the budget, noting that it provides direct cash assistance to various groups in need of government support.
On Sept 15, it was reported that the Agriculture and Food Security Ministry had introduced the Padi Crop Takaful Scheme, the country's first syariah-compliant insurance for padi farmers.
The initiative was first announced by Anwar under the 2024 Budget, with an initial allocation of RM50 million to support farmers.
On a separate matter, Mahfuz said the LPP would unveil the full extent of the damages experienced by padi farmers in Kedah due to persistent flooding since mid-September, on Wednesday.