TANJONG KARANG: The Padi Crop Takaful Scheme (STTP) under the management of Agro Captive Takaful Limited (ACTL), a subsidiary of Agrobank, has given padi farmers peace of mind by protecting their crops, which are essential to the country's food security.
This initiative, which is the first takaful scheme for rice farming in Malaysia and Southeast Asia, has garnered attention for its syariah-compliant protection against risks such as natural disasters (floods and droughts), disease outbreaks and pests.
Only rice crops are covered under this scheme, and eligible farmers must be Malaysian citizens over the age of 18, operating in designated areas, registered under the Federal Government Fertiliser Scheme (SBPKP), and must be account holders (either deposit or financing) with AgroBank.
One of the farmers, Imran Kasri, 40, shared his excitement about filling out the STTP application form after learning about the various benefits it offers.
"I have been managing 12ha of padi fields for 18 years. Every season, my fellow farmers and I face various challenges, from planting to harvesting. That's not including the rising costs of inputs such as fertiliser, diesel and pesticides," he said.
"With the STTP, I'm grateful that action is being taken to ease the struggles of rice farmers. Most importantly, this initiative motivates us to work even harder on our fields," he said.
A father of four children aged 7 to 15, Imran expressed his confidence in improving the quality of rice in the Sungai Besar area, which is currently facing a critical situation.
"For the past 10 years, rice yields have been declining. In the past, we could harvest around 8 to 10 tonnes, but now it's only about 3 to 4 tonnes," he said.
"This cannot be allowed to continue because rice is our country's staple food. While we cannot predict what disasters might come, we must remain committed to protecting this crop," he said.
Shaharudin Ibrahim, 49, also sees the STTP as a safety net for farmers in case of unforeseen disasters.
"We don't wish for disasters, but at least we have some protection with this initiative," he said.
"Even though it's still new among farmers, I will promote STTP to my peers because this is a golden opportunity that we need to grab, as the offer is very attractive," he added.
Shaharudin, a father of three children aged 21 to 26, who has been managing his rice farm for the past 10 years, praised AgroBank's dedication to improving the welfare of farmers.
The government has allocated an initial fund of RM50 million to ensure that participating farmers receive adequate financial protection when faced with crop losses due to disasters.
AgroBank president and chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin had said this protection scheme provided significant benefits to farmers, who were exposed to risks, from extreme weather conditions to plant diseases.
The scheme offers financial protection of up to RM3,000 for each farmer whose crops are damaged due to natural disasters like floods or droughts and, RM1,500 per ha for harvests lost to pests and diseases.
Tengku Ahmad Badli Shah said that the coverage was higher than the existing disaster fund.