KUALA LUMPUR (Oct 26): The government will undertake a comprehensive study before expanding the crop insurance scheme to other agricultural sectors affected by natural disasters and extreme weather, said Deputy Agriculture and Food Security Minister Datuk Chan Foong Hin.
He said several constraints require careful consideration, including how insurance premiums would be paid and how losses would be assessed.
“There are several challenges in extending the programme. The first is that paddy farmers or other farmers would normally be expected to pay the insurance premiums. However, when the programme was introduced, the government also covered the premiums.
“If the insurance scheme is to be expanded to other agricultural sectors, we need to consider several important factors, including extreme weather events and the estimated losses that can be covered,” he said during a question-and-answer session in the Dewan Rakyat on Monday.
He was responding to a supplementary question from Syed Saddiq Syed Abdul Rahman (Muda-Muar), who asked whether the government plans to extend the crop insurance scheme to vegetable and fruit farmers, in addition to rice farmers.
The Paddy Crop Takaful Scheme (STTP), introduced by the government in 2024, has paid out RM24.6 million in compensation to 10,726 paddy farmers nationwide.
The scheme provides coverage of up to RM3,000 per hectare for losses caused by natural disasters.
Chan said the ministry, through Mardi, is also stepping up research-based climate change adaptation programmes and promoting the use of appropriate agricultural technologies, including drought-tolerant rice varieties such as MR297, MR380, MR381 and MR382, as well as the CL44 chilli variety, which is suitable for cultivation in lowland areas at temperatures of up to 35°C.
“Fertigation technology, rain shelters and smart irrigation systems that use sensors and the Internet of Things also help optimise water use and minimise the risk of losses,” he said.
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