MAFI to launch agrofood insurance and takaful scheme in Q2 2022

PUTRAJAYA: The agrofood insurance and takaful scheme, which among others provides income protection to farmers whose crops are damaged due to natural disasters or diseases, will be launched in the second quarter of this year, said Agriculture and Food Industries Minister Datuk Seri Dr Ronald Kiandee.

He said the scheme was a necessity nowadays as the agricultural sector is a high-risk sector exposed to various factors.

"We are spending millions of ringgit for natural disaster funds to assist the rice sub-sector, that is why we need an insurance and takaful scheme to spread the risks," he said in a press conference after holding an Agrofood Industry Dialogue session here today.

According to Ronald, neighbouring countries have established such schemes for their agricultural sector.

He said Agrobank has been entrusted to lead the effort to develop the insurance and takaful scheme, adding that it was refining issues related to premium rates and the types of coverage to be offered.

RONALD-INSURANCE 2 (LAST) PUTRAJAYA

For a start, he said the scheme would be offered to those involved in the country's rice sub-sector before being expanded to other sub-sectors.

In another development, Ronald said the Ministry of Agriculture and Food Industries (MAFI) had presented the mechanism for distributing subsidies to poultry farmers and egg producers to the Ministry of Finance.

He said the mechanism involved MAFI agencies, namely the Veterinary Services Department, to monitor and manage applications and Agrobank, to distribute funds to eligible applicants.

In a statement yesterday, Ronald said the Cabinet had agreed to provide a subsidy of 60 sen per kilogramme to poultry farmers and five sen per egg from all categories, during the implementation of the Keluarga Malaysia Maximum Price Control Scheme from Feb 5 to June 4.

"MAFI hopes yesterday's subsidy announcement will boost the country's chicken and egg production as well as stabilise supplies," he said.

Earlier, 1,200 participants took part in the hybrid dialogue session held for players in the paddy, crops, livestock and fisheries sub-sectors.

-- BERNAMA