The Ministry of Agriculture and Livestock Development (MoALD) has revised some arrangements and set up new criteria for crop and livestock insurance under its Crops and Livestock Insurance Program.
According to Crop and Livestock Insurance Premium Subsidy Working Procedure 2024, that came into effect on October 18, farmers and entreprises are entitled to subsidies as follows:
- 80% of the premium for insurance risk coverage up to five million rupees
- 65% for risk coverage between Rs five million and 10 million
- 50% for risk coverage exceeding Rs 10 million
The procedure defines farm animals, poultry and fish under livestock insurance.
Similarly, crop insurance coverage includes a wide range of crops such as fruits, vegetables, cereals, oilseeds, spices, flowers, and mushrooms. It also covers cash and industrial crops like silk, coffee, sugarcane, bees, and others.
In line with the updated provisions, small-scale farmers will receive higher subsidies while big-scale farmers receive lesser subsidies on insurance premiums.
Previously, a subsidy up to 80% was provided on all types of insurance premium to all farmers regardless of their scale. Farmers and businesses will be required to declare that they have not received any insurance subsidies from provincial or local governments within the same category.
According to the procedure, a committee shall be formed under the leadership of the Secretary of the MoALD, which will be responsible for implementing, monitoring and regulating the insurance program.
The Ministry, the Insurance Board, the Department of Agriculture, the Department of Livestock Services, and the Committee may conduct monitoring as needed regarding the utilisation and effectiveness of crop and livestock risk insurance.
