ALOR STAR: Padi farmers are urged to subscribe to the Padi Crop Takaful Scheme, which offers better compensation and coverage for their crops.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the scheme would help padi farmers face future challenges brought by extreme weather due to climate change.
"Agro Bank, as the operator for the scheme, is having discussions with Bank Negara Malaysia.
"Once the central bank approves it, we will roll out the scheme," he said at a press conference after presenting cash aid to 2,546 padi farmers under Muda Agriculture Development Authority (Mada) affected by floods in August and September last year.
The farmers, who work a total of 3,276ha of padi fields damaged by the floods, received a total of RM3.28 million in compensation from the Padi Crop Disaster Fund (TBTP).
Present were Mada chairman Datuk Dr Ismail Salleh and general manager Kamarudin Dahuli.
The handover of aid was in conjunction with the 54th Mada anniversary.
Mohamad said the takaful scheme would better safeguard farmers' welfare in the event of natural disasters.
"Climate change has brought unpredictable weather patterns such as prolonged dry spells and massive floods.
"Hence, I am urging all padi farmers to join the scheme under Agro Bank to better safeguard their welfare in the event of losses due to natural disasters," he said.
Mohamad added that the takaful scheme would distribute compensation more efficiently.
"Under the current scheme, the process of distributing the cash aid takes time.
"For example, the flood disaster (in Mada area) happened last year, but only now are we able to distribute the cash aid.
"Hence, the new scheme will be better managed under Agro Bank and the cash aid distribution will be much faster and efficient," he said.
It was reported that the takaful scheme would offer a higher compensation of up to RM3,000 per hectare per season, compared with RM1,800 per hectare per season under the TBTP.