Farmers produce food for people to eat and without them, the world will go hungry. In Malaysia, farmers can take advantage of the Agro-Food Takaful Insurance Scheme plans supported by the government through MAF. It aims to compensate farmers for damages and losses caused by natural disasters.
Agro-Food Takaful Insurance Scheme to Compensate Farmers
The government will establish the Agro-Food Takaful Insurance with the help of the Ministry of Agriculture and Food Industries (MAFI). About 189,500 rice farmers will benefit from the said insurance. The insurance coverage will stretch in stages to sectors, which include fisheries and other food industry sub-sectors.
“On this matter, the government will give continuous focus to the agro-food sector by improving productivity and ensuring national food security while driving economic growth for the well-being of the people. Indeed, the government is developing various initiatives and efforts so that the people could obtain adequate and secure food supply at reasonable prices,” said Agriculture and Food Industries Minister Datuk Seri Ronald Kiandee.
Malaysia is a wide-ranging food importer and takes measures to boost domestic grains and poultry supplies. Nations around the globe are battling inflation, from basic commodities to food costs due to Russia’s Ukraine invasion. The country is among other nations that still have crop insurance.
Transforming the Agro-Food Sector
When a country has poor agriculture, there is less harvest for the people to consume. This is one of the main reasons why countries have to import to ensure that they have sufficient supply to last for months or years.
To lessen its food importation, Malaysia needs to utilize modernized and smart agriculture to transform the agro-food sector. It will be under the National Agro-food Policy 2021-2030 (DAN 2.0) to help emphasize new strategies. These are according to modern technology and manageable development coordinated with Industry Revolution 4.0 (IR4.0) and the Sustainable Development Goals (SDGs) 2030.
Additional RM200 Million to Boost Food Production
Meanwhile, Malaysian PM Datuk Seri Ismail Sabri Yaakob announced an additional RM200 million to support a low-cost financing scheme. This will help increase the nation’s food production.
“In order to increase the country’s food production, Mafi through Agrobank has allocated as much as RM800 million to the agricultural community under the DPAKM. Following the overwhelming response, the government agreed to add another RM 200 million in low-cost financing funds to make it RM 1 billion for the benefit of our entire agro-food farming community,” said Prime Minister Yaakob.
He added that middlemen usually dishevel price controls that’s why the government must make every effort against them. If the government will do its best, it will help ensure food supply stability, making it affordable for consumers, at the same time. The introduction of the Agro-food Takaful Insurance Scheme will minimize the financial implications of crop loss from floods, droughts, and heavy rains, including disease outbreaks.
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