To minimize economic losses from natural disasters, diseases, and other risks in agriculture and livestock business, the government has been implementing a system of providing subsidies on insurance premiums. For this, the government itself is providing up to 80 percent subsidy on insurance premiums.

This system was implemented nationwide from January 15, 2013, through the federal government. While it was previously managed by the Ministry of Agriculture, Forestry and Environment, it is now being handled by the provincial government, informed Shyam Singh Khadka, spokesperson for the Ministry of Agriculture, Land Management and Cooperatives.

With the implementation of the 'Procedure for Providing Subsidy on Premiums for Agriculture, Livestock, and Herbal Insurance, 2083 BS' from August 17, all management responsibilities have come to the provincial government, it was informed. In the provinces too, the management responsibility is being carried out by the Ministry of Agriculture, said spokesperson Khadka.

According to the new procedure, a subsidy of 80 percent will be provided on an insured amount of up to NPR 10 million, and 50 percent on the additional insured amount exceeding NPR 10 million. This arrangement helps farmers who want to pursue farming and animal husbandry commercially to protect themselves from potential economic risks, said Prakash Kumar Panta, agricultural economics director at the ministry.

The federal government has provided NPR 36 million to the Sudurpashchim Province for agricultural and livestock insurance premium subsidies for the current fiscal year, according to the procedure, he informed. Of this, NPR 12 million has been allocated for agriculture and NPR 24 million for livestock.

The procedure has arranged for the necessary funds to be provided by the federal government through conditional financial transfer, and its implementation will be carried out by the provincial government. If the allocated budget is insufficient, the province can manage the additional amount itself.

Under the new arrangement, farmers can insure crops such as paddy, wheat, vegetables, potatoes, fruits, bananas, oranges, mandarins, ginger, turmeric, cardamom, coffee, tea, mushrooms, kiwi, dragon fruit, apples, and other crops. Similarly, subsidies will be available for insurance of herbs like Timur and Mentha, as well as livestock, poultry, pigs, goats, fish, and fodder crops.

Ministry spokesperson Khadka states that farmers from the Terai to the hilly and mountainous districts of Sudurpashchim, where there is potential for agriculture and livestock, can benefit from this. He urges them to take advantage of insurance, which has become an important means of reducing the economic burden on farmers due to losses in crops and livestock caused by floods, inundation, hailstorms, droughts, excessive rainfall, diseases, and other disasters.

The procedure has arranged for the issuance of insurance policies through the Agricultural and Livestock Insurance System (ALIS) to make the insurance process systematic and transparent. If there are any problems with the system, insurance policies can also be issued physically with the approval of the National Insurance Authority.

Insurance companies must submit details of insurance policies issued each month to the Nepal Insurance Authority within seven days. The authority will verify the details and disburse the subsidy amount through the provincial ministry or designated office.

Farmers, local levels, cooperatives, and other stakeholders can coordinate in the insurance program. According to the procedure, offices or local levels of the concerned province must provide necessary recommendations and facilitation for insurance. Local levels and cooperatives can also participate in group insurance for farmers.

The government started the system of providing subsidies on agricultural insurance premiums from January 15, 2013. The latest procedure has systematized subsidy distribution, budget management, and payment processes by covering agriculture, livestock, and herbal insurance.

Since farmers receive government subsidies, the government has been urging farmers involved in agriculture and livestock business to insure their produce and livestock to secure themselves against potential risks.

For the convenience of farmers in Sudurpashchim, different companies have been assigned responsibilities for insurance based on districts. Here, Rastriya Beema Company is responsible in Kailali, Doti, and Bajhang, Nepal Insurance Company in Darcula, Baitadi, Dadeldhura, and Kanchanpur, and United Aodos Insurance in Bajura and Achham.

Source - https://english.ratopati.com