Kiandee speaks during a function at his ministry’s office on Wednesday. — Photo by Adriana Mroon Ambrose
PUTRAJAYA: The Ministry of Agriculture and Food Industry (Mafi) has tasked Agrobank to spearhead efforts to formulate an insurance scheme for the agriculture and agro-food industry, to alleviate the burden of farmers and those in the livestock business affected by natural disasters.
Its minister Datuk Seri Dr Ronald Kiandee said the scheme would provide several attractive Takaful or Islamic insurance protection options to the target group affected by disasters, agricultural disease and weather uncertainties which affect their production and income.
“Through the insurance scheme, we will be able to help guarantee continuous income in the form of appropriate compensation from the insurance company.
“In this effort, the industry players themselves are also encouraged to submit their own proposals,” he said during a function at his office on Wednesday.
Kiandee said since there has not been any such insurance scheme available in the country at the moment, his ministry would be the pioneer for its implementation.
He added that there is a need for the insurance scheme especially for paddy plantation and other large-scale crops, as well as the livestock and fisheries industries.
“At the same time, the government is spending large amounts for subsidies and compensation to farmers affected by natural disasters every year.
“Through the 12th Malaysia Plan, the government provides an allocation of RM80 million for the agricultural disaster fund for various crops including paddy.
“We see this as a huge expense that has to be borne by the government every year, and Mafi is of the opinion that this cannot be done continuously,” he said.
Therefore it was time for the insurance scheme to be introduced to be able to provide continuous protection to the agricultural and agro-food community in the country, he added.
Kiandee said insurance schemes for the agricultural sector were not unique and new as several agricultural countries such as the Philippines, Vietnam, Indonesia and China have already implemented them.
“Overall, this initiative can indirectly maintain the involvement of farmers and livestock operators in ensuring the security of food supply as well as being a form of assistance to preserve their livelihood.”
Meanwhile, Kiandee also revealed Mafi’s five other major programmes for this year, including the launch of the National Agro-Food Policy 2.0 2021-2030 (DAN 2.0), National Food Security Policy Action Plan, and Young Agropreneur Financing Scheme.
“For the fisheries industry, it would be the launch of the Tuna Industry Development Strategic Plan 2021-2030 and the National Fisheries Development Plan 2021-2030,” he said.
Elaborating on DAN 2.0, Kiandee said it was a long-term policy for the next 10 years which outlined various strategies and action plans to modernise the agro-food sector into a modern, sustainable and resilient industry based on modern technologies.
“DAN 2.0 has been aligned with Wawasan Kemakmuran Bersama (WKB) to achieve the agricultural modernisation targets and the Sustainable Development Goals (SDGs) towards Zero Hunger.
“DAN 2.0 will be the main policy and the national reference in developing the agro-food sector through modern technology and research, development, commercialisation and innovation; development of high-value and export-oriented products; empowerment of human resources and manpower; emphasis on sustainable agricultural practices and food systems; and strengthening business ecosystems and governance institutions,” he said.