Agrobank Introduces Paddy Crop Takaful Scheme (STTP) To Bolster Essential Protection For Farmers
SERDANG, 14 SEPTEMBER 2024 – Individual paddy farmers across the country can now breathe a sigh of relief and need not worry if their paddy crops are hit by natural disasters such as floods and droughts or attacked by crop diseases and pests.
This is because for the first time, the Ministry of Agriculture and Food Security (KPKM) through Agrobank has launched the Agrofood Takaful Protection Scheme: Paddy Crop Takaful Scheme (STTP), the first of its kind in Malaysia that will benefit paddy farmers in Malaysia.
STTP, which is the first Shariah-compliant protection introduced in the Southeast Asian region, was announced by Prime Minister, Datuk Seri Anwar Ibrahim under the 2024 Budget with an initial fund of RM50 million to provide protection to farmers.
According to Agrobank’s President/Chief Executive Officer, Dato’ Tengku Ahmad Badli Shah Raja Hussin, “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.
This scheme is open to all individual farmers nationwide who are registered with agencies recognised by the Ministry of Agriculture and Food Security.
The registration method has also been simplified with individual farmers only needing to obtain the takaful form at the nearest Area Farmers’ Organisation office.
This demonstrates the government’s concern in helping farmers across the country when facing natural disasters while strengthening the country’s food chain through initiatives launched by KPKM through Agrobank.
For more information about the Paddy Crop Takaful Scheme, please visit www.agrobank.com.my or visit the nearest Agrobank branch.
