The federal government plans to come up with a crop insurance scheme to protect farmers’ interests in the event of natural disasters.
Once implemented, the scheme will benefit some 200,000 farmers nationwide.
Currently, the Agriculture and Agro-Based Industry Ministry is fine-tuning the final insurance module based on feedback from farmers and insurance companies, among other things, on the total insurance premium, the threshold income and average produce of the farmers.
The module will be consistent with those being practice in other countries.
Minister Ahmad Shabery Cheek said the ministry planned to introduce the insurance scheme under the next national budget, adding that he planned to table the module for the cabinet’s perusal by this May.
The ministry and Agro Bank are now looking at the draft, and he said the ministry was committed to implementing the country’s first crop insurance scheme
“The main aim behind the introduction of the fund was to protect farmers in the event of natural disasters,” said Ahmad Shabery at the Bernas Awards Night in Kuala Lumpur on Tuesday.
Padi Beras Nasional Bhd (Bernas) would contribute RM10 million to the crop insurance scheme.
The ministry will also obtain feedback from agricultural authorities including Muda Agriculture Development Authority (Mada) and state governments on the proposed scheme to ensure effective and efficient implementation.