AGROBANK EXPANDS FINANCIAL PROTECTION OF FARMERS THROUGH STTP LAUNCH IN SABAH

KUALA LUMPUR, May 11 (Bernama) --  Agrobank has launched the paddy takaful scheme (STTP) in Sabah, which aims to expand financial protection for paddy farmers in the country.

Deputy Minister of Agriculture and Food Security, Datuk Arthur Joseph Kurup, stated that as of April 30, 2025, a total of 5,642 paddy farmers in Sabah had registered and received STTP coverage.

"More than 19,000 farmers have yet to register, including 6,602 individuals who do not yet have an Agrobank account," he said in a statement.

The scheme is offered at an affordable contribution rate of RM64.80 per hectare per season, and currently, this contribution is being borne by the federal government.

In light of this, he urged unregistered farmers to register promptly to ensure they do not miss out on this protection.

As of March 2025, a total of RM16.2 million in compensation has been approved to ease the burden of 6,319 farmers nationwide affected by disasters.

“The launch of the STTP in Sabah is proof of Agrobank's commitment to ensuring no farmer is left out of vital financial protection. We understand the challenges faced by the farming community and will continue to play our role as a provider of inclusive and comprehensive financial solutions for the agri-food sector," he said.

Accordingly, the Ministry of Agriculture and Food Security (KPKM) welcomes the efforts of the Sabah government in establishing the Sabah Paddy and Rice Board (LPBS) as a strategic partner to help strengthen the management of the rice and paddy industry in a more organised, efficient, and competitive manner in Sabah.

This aligns with the ministry's goal of continuously enhancing the nation’s food security and strengthening the agro-food value chain.

-- BERNAMA