KUALA LUMPUR: The Padi Crop Takaful Scheme is set to kick off in the middle of this year.
Agriculture and Food Security Minister said the takaful scheme offers higher compensation amounts and coverage areas compared to those provided under the existing Padi Crop Disaster Fund (TBTP).
"This scheme is expected to be implemented middle of this year, subject to meeting the criteria set by Bank Negara Malaysia," the ministry said in a parliamentary reply to Jamaludin Yahya (PN-Pasir Salak).
Jamaludin asked about the ministry's efforts to assist farmers who face losses due to pest attacks such as brown planthopper and stem borer as well as other viruses.
The takaful scheme is a long-term measure to assist farmers suffering losses caused by plant diseases and pest attacks.
It was reported that the takaful scheme offers a higher amount of compensation of up to RM3,000 per hectare per season compared to RM1,800 per hectare per season under TBTP.
The financial assistance provided to affected farmers under TBTP is based on the crop stage, where from 1 to 70 days, the assistance rate is RM876.00 per hectare, while for the crop stage of 71 to 120 days, the amount of assistance is RM1,800.00 per hectare.
"The maximum amount of assistance for each eligible farmer is limited to the affected area of three hectares only, per planting season."
Meanwhile, on the price hike set for certified padi seeds (BPS/benih padi sah) the ministry said the maximum selling price for a 20-kilogramme bag is RM40 at the warehouse of the producing company, while the retail price is RM45.
"This price determination is made to prevent manipulation of BPS prices on the ground, through uncontrolled purchases by various parties.
"The ministry, through the Padi and Rice Monitoring Board (KPB), continuously conducts research and enforcement to ensure that seed prices are under control, with no leakages or arbitrary price increases.
"The ministry will also take immediate action to revoke BPS sales licences if retailers sell seeds exceeding the price of RM45."