Agrobank Disburses RM70 Mln To 7,500 Padi Farmers

PASIR MAS, Oct 28 (Bernama) -- Agrobank has disbursed RM70 million in financing to 7,500 padi farmers so far this year through its Agropadi-i As-Salam scheme to help them finance their cultivation activities, said Padi and Rice Regulatory director-general Datuk Luqman Ahmad.

He said the scheme offered financing of up to RM50,000 without collateral, with repayment due within six months of disbursement.

The facility provides financial support to farmers who need capital to continue cultivation, particularly after suffering losses or when starting a new planting season.

“Agrobank was established to help the government address financing issues in the agricultural sector. I believe financing through Agropadi-i As-Salam can therefore help farmers get started with their padi cultivation,” he told a press conference at a rice mill in Mukim Tasek Berangan here today.

Luqman said the facility could also serve as an alternative for farmers who had to obtain loans from third parties to meet their capital needs.

However, he said his department did not have data on the number of farmers borrowing from informal moneylenders or the interest rates charged.

He encouraged farmers to seek financing from registered financial institutions that were subject to the relevant guidelines and regulations.

Luqman said Agrobank also played a role in meeting the financing needs of the agricultural sector, as the government had to comply with procedures for preparing and approving allocations before financial assistance could be disbursed directly.

On a separate matter, he said the Agriculture and Food Security Ministry (KPKM) had proposed raising the ceiling price of local white rice following an increase in production costs, but the government had yet to make a decision.

“The ceiling price of local white rice remains at RM2.60 per kilogram, although the padi floor price has been raised from RM1,300 to RM1,500 per metric tonne,” he said.

He said this had created a disparity between the input costs borne by millers and the maximum retail price permitted for local white rice.

“Millers have said that the time has come to raise the ceiling price because production and other costs have increased.

“Therefore, both prices should be raised. However, the government has yet to decide whether to allow local white rice to be sold above RM2.60 per kilogram,” he said.

He said the government needed to consider several factors before making a decision, including the impact of higher rice prices on the people's cost of living and inflation.

-- BERNAMA