FLOODS AND CROP INSURANCE IN MALAYSIA

IN MALAYSIA FLOODS THE INSURANCE referred as flood coverage basically means that your property, whether your house or your car, is protected in case it is affected by floods. If your property is protected by flood coverage, the insurance will compensate you for any losses incurred due to flooding. There are frequent questions about how anybody claim  insurance for flooding. They has to notify agent as an intermediary with details of loss. Provide complete information, including relevant supporting documentation such as photographs (if any) Depending on the severity of loss, your insurer may appoint an independent loss adjuster to assist you in filing your claim. The Malaysian government will offering crop insurance policies to compensate farmers for losses incurred as a result of natural disasters. This initiative is part of the government's efforts to enhance food security Malaysia will offer government-backed insurance plans to help compensate farmers for losses after natural disasters, as part of measures to strengthen food security. Multi-peril crop insurance (MPCI) is structured in a way so as to protect the farmers from losses in crop production, including lower yields, caused by natural calamities or events like disease (pest and insect damage), drought, flooding, fire or destructive weather. The importance of the government to introduce crop insurance, padi cultivation subsidies to strengthen industry are important. This article in "Anim Agriculture Technology" blog discussed about flood and crop insurance in Malaysia.

The development of the rice industry requires the formulation of a new policy involving six aspects, including providing subsidies for padi cultivation based on productivity rather than on the basis of rice field area. Universiti Putra Malaysia's agricultural economics expert, Prof Datuk Dr. M Nasir has suggested that the government should consider floating the price of local white rice, implementing targeted rice subsidies, introducing crop insurance and early warning systems, and adopting a flexible floor price based on the Producer Price Index (PPI). He said that these six policy changes, with the integration of technology and the determination of farmer-entrepreneurs, have the potential to transform the landscape of the country's rice industry development to achieve a 100 per cent self-sufficiency level (SSL). Our production policies need to be rationalised. Subsidies for padi cultivation, such as fertilisers and seeds, should be implemented based on productivity to further enhance the motivation of farmers in increasing their respective outputs. The government is currently practising price ceilings and floor price for rice...the retail price of local rice should be floated according to market prices. When floated, the government should implement targeted subsidies for rice to the B40 group, using methods such as cash transfers credited to their identification cards for rice purchases. He said this in response to the proposal by Titiwangsa member of parliament, Datuk Seri Johari Abdul Ghani, that the government should focus on developing the rice industry in the country to make it a profitable industry resulting in the country to be more self-reliant. Nasir added that the floor price for padi is currently set at RM1,200 per metric tonne, and it should ideally be "linked" to the Producer Price Index (PPI) to align with the increase in input costs.

Many farmers incur increased input costs such as fertilisers but the floor price remains the same. In the 2024 Budget presentation this Friday, we also hope that the government can introduce crop insurance to ensure that farmers are not adversely affected in the event of incidents that damage crops, similar to what exists in the United States. To start with, the implementation of crop insurance could possibly be offered by government agencies such as the Farmers' Organisation Authority or Agrobank. The government also needs to establish an early warning system that can predict our rice production for a specific period to ensure our supply is always sufficient.  It was suggested that the government could explore the potential of cultivating rice to five times over in two years by ensuring the use of more early-maturing varieties to strengthen the domestic rice industry. That its impact on soil quality needs to be emphasised, along with addressing issues related to machinery that may damage soil structure, its effects on water quality, the health of farmers, and the use of agricultural chemical inputs. The development of more new rice varieties, especially those that are early-maturing and resistant to abiotic stress factors such as drought, floods, heat, salinity and biotic stress factors like pests and diseases. This can be achieved by providing specific research funding to rice researchers, particularly those specialising in breeding and agronomy. The government recommend several rice varieties based on the suitability of the rice planting location, which is beneficial for adjusting fertiliser requirements to minimise input. There are needs to encourage farmers to plant a particular variety for a maximum of three seasons and then switch to another variety. They can return to the previous variety after a few seasons to reduce disease and from pest attacks. The establishment of special areas for low-input and sustainable rice production systems can also be implemented.

In Pahang reported that 'Farmers incur RM5.4 million in losses due to floods' in which more than 2,000 pineapple and padi farmers have incurred losses of about RM5.4 million after their crops were destroyed by floods at the end of last year.  Bernama report among those affected were 54 farmers who worked on pineapple farms covering an area of 42.8ha in Kampung Cenderawasih, Sungai Miang and 2,278 padi farmers in six schemes covering an area of 4,918ha. Pahang Agricultural Department director stated the flood disaster that happened between Dec 15 to 27 last year led had to the devastating destruction of the crops. There are six padi schemes under the supervision of the Pekan Integrated Agriculture Development (IADA) that were destroyed were Skim Serandu, Skim Pulau Jawa-Pulau Tambun, Skim Mambang, Skim Pahang Tua-Langgar, Skim Gangchong and Skim Merchong. The continuous rain factor from November to December last year let to the floods in the area which reached a height of 1m.  The floods disaster that happened at the end of last year caused many farmers to miss out on harvesting, as after three days of floods the Padi was as good as destroyed. Currently the farmers have changed their second season Padi planting schedule to avoid the floods but the opposite flood happened when rains began in November and not as usual in Deccember. Farmers whose fields were inundated by floods have the opportunity to receive the Tabung Bencana Tanaman Padi (TBTP) aid from the government between RM876 up to RM1,800 per hectare with a maximum of only three hectares. For the pineapple farmers, they were eligible to receive aid under the Agro-food Project Revival Programme (PPSPA) of up to RM45,000, based on the expense of the prject with a maximum of only 3ha. Upon approval, the funds would be deposited into the farmers' accounts to help restart their respective projects. Farmers and growers whose crops were destroyed also have the opportunity to receive aid of agricultural input and plowing work from the agricultural department and IADA. Sources: Bernama and NST. Thanks...

By,

M Anem,

Senior Agronomist,

Putrajaya,

Malaysia.

January 2024.