Livestock insurance slow in taking off

Livestock insurance slow in taking off

Oct 10, 2014-

Livestock insurance has been slow in taking off in Makwanpur despite government efforts with only 307 head of cattle being insured in the last fiscal year, said the Livestock Service Office (LSO), Makwanpur.

The government provided a 50 percent subsidy on premiums for agricultural insurance in a bid to spread agricultural insurance in the district. It had allocated a large budget to fund the financial support.

LSO officials said that lack of awareness about insurance and the complicated procedure involved for insuring livestock was the main reason for the low level of insurance coverage.

The government had earmarked Rs 130 million for crop and livestock insurance in the last fiscal year’s budget, but Rs 110 million of it was frozen as it could not be spent.

The government has increased the subsidy on premiums to 75 percent which the LSO believes will help expand insurance coverage.

“We believe the rise in the subsidy will encourage farmers to get their livestock insured,” said Surya Prasad Poudel, chief of the LSO, Makwanpur. Animals like cows, buffalos, pigs and goats are insured.

However, stakeholders said that an insurance campaign through cooperatives could be fruitful in expanding coverage. “The programme may be effective if it is implemented through the cooperatives run by livestock farmers,” said Narayan Devkota, president of the Dairy Producers’ Cooperative Association.

Eight cooperatives in Makwanpur are engaged in expanding livestock insurance.

Published: 11-10-2014 09:41

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