Living up to its mission to provide a holistic range of financial services and banking facilities with a focus on the agricultural sector, Agrobank Malaysia developed a program called, “Development Area Farmers Organization Kuala Langat, Selangor under financing for Chili Fertigation-I”, to assist farmers in the cultivation of chili, a lucrative crop that captured the attention of Malaysia’s Ministry of Agriculture and Agro-based Industry (MOA).
The program is a collaboration between Agrobank and Pusat Pertubuhan Kawasan (PPK) or Area Farmers Organization Kuala Langat (PPK-KL), an agriculture community within the state of Selangor.
Under the program, Agrobank will approve financing to selected participants under the PPK-KL and disburse according to the agreed cost of production. Upon harvesting, the chili crop will be sold to PPK-KL under guaranteed purchase agreement at floor price, set by the Marketing Unit of PPK-KL, which will then sell to wholesale markets. The program ensures steady income to farmers via guaranteed purchase and farmers’ steady repayment of facility to Agrobank.
Since the introduction of the program in 2017, a total of RM 430,000 has been approved to 27 farmers in Kuala Langat area. It has also been extended to some areas in the State of Kelantang, and this model will be replicated in suitable areas throughout the country. In addition, the Farmers Organization (FOA) has been encouraging the youths to take-up chilli fertigation horticulture which promises lucrative returns.
Agrobank’s “Development Area Farmers Organization Kuala Langat, Selangor under financing for Chili Fertigation-I” received a Merit Award in the 2018 ADFIAP Outstanding Development Project Award under the local economic development category.