KUALA LUMPUR, Oct 22 (Bernama) -- Agrobank has disbursed RM70 million through its padi financing facility as of Oct 20 to help farmers meet their working capital needs throughout the planting season, thereby supporting padi production and national food security.
Its group president and chief executive officer, Datuk Tengku Ahmad Badli Shah Raja Hussin, said the facility, which has assisted nearly 10,000 farmers nationwide, is part of the bank's efforts to provide access to financing at affordable rates.
He said that the special financing facility can also support the continuity of planting activities, protect income sources, enhance farmers’ resilience, and reduce dependence on informal financing sources.
"Support for farmers must include capital needs and protection against risks that can affect their crop yields and income.
"Appropriate financing and takaful protection can help farmers manage risks, continue planting activities after experiencing losses, and build stronger financial resilience," he said in a statement here today.
According to the statement, farmers can obtain financing of up to RM50,000 for a period of up to six months for each planting season, with a profit rate ranging from one per cent to 3.25 per cent per season.
The facility offered for up to five years can be renewed, subject to assessment, approval, and the stipulated terms and conditions, to finance the purchase of agricultural inputs and operations throughout the planting season.
In 2025, Agrobank disbursed RM111.63 million in padi financing.
In addition to financing, Agrobank also offers the Padi Crop Takaful Scheme (STTP) which provides coverage of up to RM3,000 per hectare (ha) for each planting season against losses due to natural disasters, as well as up to RM1,500 per ha for losses due to pest attacks and plant diseases.
So far, protection benefits amounting to RM51,956,633 have been channelled through STTP to farmers nationwide to help reduce the impact of crop losses.
Tengku Ahmad Badli Shah said Agrobank believes the resilience of the padi sector starts with farmers who have access to capital, protection and appropriate support.
Therefore, Agrobank will continue to play a role as a development partner in strengthening farmers’ welfare and the sustainability of the national padi industry, he added.
-- BERNAMA