Kuala lumpur: Agrobank has announced a significant initiative to support padi farmers by offering a 50 per cent discount on the profit rate for its working capital financing package. This measure is set to assist farmers in preparing for the upcoming planting season by alleviating their financial burdens.

According to BERNAMA News Agency, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu highlighted that this initiative is designed to not only ease the financial constraints faced by padi farmers but also to boost the productivity and competitiveness of the nation's agricultural sector. In his speech at the launch of the Road to MAHA 2026 Northern Zone programme, he emphasized the government's recognition of the challenges farmers face in securing adequate capital.

The Malaysia Agriculture, Horticulture and Agrotourism Exhibition (MAHA) 2026, as mentioned by Mohamad, will be hosted at the Malaysia Agro Exposition Park Serdang from August 28 to September 6. The event aims to implement cost-saving strategies in response to the current global supply chain conditions.

Agrobank's president and group chief executive officer, Tengku Ahmad Badli Shah Raja Hussin, provided further details on the financial package, noting that the discounted profit rate will now be two per cent, down from the previous four per cent. The financing package offers loans up to RM50,000, although typical borrowings by padi farmers range from RM7,000 to RM10,000 for cultivating three hectares of padi fields. He reassured that farmers would have the financing needed to start cultivation and repay the loans post-harvest, based on their eligibility.