Budget for crop, livestock insurance subsidy frozen REPUBLICA KATHMANDU, July 12 : The amount allocated by the government to subsidize insurance schemes on crops and livestock for fiscal year 2012/13 has been frozen due to delay in approval of the directives related to subsidy in the premium for crop and livestock Insurance. Through the full-fledged budged issued in April, the government had allocated Rs 20 million to subsidize 50 percent of the premium amount paid by the farmers. “We had prepared directives after consultation with finance ministry and forwarded it to the Cabinet for approval on May 15. But it was approved a week ago only,” Prabhakar Pathak, spokesperson for the Ministry of Agricultural Development (MoAD) said. “Because of the delay, we couldn´t implement the program this year.” The cabinet had sent the directives to its financial and infrastructure committee. The directive was stuck in the committee for long as its meeting was postponed repeatedly, according to officials. The government decision to introduce insurance schemes for crops and livestock had paved the way for insurance companies to launch insurance crops and livestock schemes and banks and financial institutions to channel more funds in the agriculture sector. However, it is still unknown how many farmers purchased crops and insurance policy. Kundan Sapkota, deputy director of the Insurance Board, said not a single farmer applied for the subsidy in the third quarter (mid-January to mid-April). We are yet to collect report of the fourth quarter, he said. “We have asked the government to set aside Rs 150 million for insurance subsidy program in the upcoming budget,” said Pathak. According to officials, the directives benefit both commercial and subsistence farmers. Vijoy Kumar Ballick, joint secretary of MoAD, said the insurance premium is evaluated on the basis of cost of production in crops and valuation in livestock. As per the directives, a farmer can get 50 percent of the premium amount for insurance policy of up to Rs10 million as Published on 2013-07-13 01:54:52
Posted on: Mon, 15 Jul 2013 06:19:12 +0000
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