Agrobank Offers 50 Pct Discount On Profit Rate For Padi Farmers' Loans

ALOR SETAR, May 9 (Bernama) -- Agrobank has agreed to offer a 50 per cent discount on the profit rate for a working capital financing package for padi farmers to support cultivation for the upcoming planting season.

Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the initiative aims to ease the financial burden of farmers while enhancing the productivity and competitiveness of the country's agricultural sector.

"The government fully understands the capital constraints currently faced by padi farmers," he said in his speech at the launch of the Road to MAHA 2026 Northern Zone programme here today.

Speaking to reporters later on the Malaysia Agriculture, Horticulture and Agrotourism Exhibition (MAHA) 2026, Mohamad said the event, which will be held at the Malaysia Agro Exposition Park Serdang from Aug 28 to Sept 6, will adopt a cost-saving approach in view of the current global supply situation.

Meanwhile, Agrobank president and group chief executive officer Tengku Ahmad Badli Shah Raja Hussin said the 50 per cent discount on the profit rate would reduce the rate to two per cent from four per cent previously.

He said the working capital financing package offers loans of up to RM50,000, although most padi farmers typically borrow between RM7,000 and RM10,000 to cultivate three hectares of padi fields.

"To ensure farmers have sufficient capital to begin cultivation, they can obtain financing from Agrobank based on their eligibility and repay the loan after harvest," he said.

-- BERNAMA