Budget of 3.5 crore rupees allocated for agriculture and livestock insurance subsidies in Sudurpaschim
Sudurpaschim: To mitigate financial losses in agriculture and livestock farming caused by natural disasters, diseases, and other risks, the government has implemented a system to provide subsidies on insurance premiums. Under this arrangement, the government covers up to 80 percent of the insurance premium.
Shyam Singh Khadka, spokesperson for the Ministry of Agriculture, Land Management, and Cooperatives, stated that while this function was previously managed through the Ministry of Agriculture, Forestry, and Environment, it is now being handled by the provincial government.
He noted that with the implementation of the "Procedure for Providing Subsidies on Agriculture, Livestock, and Herbal Insurance Premiums, 2083" (BS) effective from Bhadra 1, the entire administrative responsibility has shifted to the provincial government. Within the province, the Ministry of Agriculture is overseeing these management responsibilities, Spokesperson Khadka added.
According to the new procedure, a subsidy of 80 percent is provided for insured amounts (sum insured) up to 10 million rupees, while a 50 percent subsidy applies to any amount exceeding 10 million rupees.
Prakash Kumar Pant, Director of Agricultural Economics at the Ministry, explained that this arrangement helps farmers—who wish to pursue commercial-scale agriculture and livestock farming—protect themselves against potential financial risks. He further stated that for the current fiscal year, the federal government has allocated 36 million rupees to Sudurpaschim Province for agriculture and livestock insurance premium subsidies. Of this total, 12 million rupees has been earmarked for the agriculture sector, and 24 million rupees for the livestock sector. The procedure stipulates that the necessary funds will be provided by the federal government through conditional financial transfers, with implementation carried out by the provincial government. In the event that the allocated budget is insufficient, the province is authorized to manage the shortfall on its own.
Under this new arrangement, farmers can insure various crops—including food grains (such as paddy and wheat), vegetables, potatoes, and fruits (such as bananas, oranges, *junar* [a type of sweet orange], apples, kiwis, and dragon fruit)—as well as ginger, turmeric, large cardamom, coffee, tea, and mushrooms. Furthermore, subsidies will be available for the insurance of medicinal herbs (such as *timur* and mentha), livestock, poultry, pigs, goats, fish, and fodder crops.
Khadka, the ministry spokesperson, stated that farmers across Sudurpaschim Province—ranging from the Terai to the hilly and Himalayan districts—can benefit from this scheme. He urged farmers to take advantage of the program, noting that insurance has become a vital tool for alleviating the financial burden faced by farmers when crops or livestock are damaged due to floods, inundation, hailstorms, drought, excessive rainfall, diseases, or other disasters.
To ensure the insurance process is organized and transparent, the procedure mandates that insurance policies be issued through the Agriculture and Livestock Insurance System (ALIS). In the event of any technical issues with this system, provisions exist to issue insurance policies in physical (paper-based) form, subject to approval from the Nepal Insurance Authority.
Insurance companies are required to submit details of all policies issued each month to the Nepal Insurance Authority within seven days. Once the Authority verifies these details, the subsidy amount will be disbursed through the relevant provincial ministry or a designated office. Provisions have been made for farmers, local levels (local governments), cooperatives, and other relevant organizations to coordinate regarding insurance programs. According to the operational guidelines, the respective provincial offices or local levels are required to provide the necessary recommendations and facilitation for insurance. Local levels and cooperatives may also participate in facilitating collective insurance for farmers.
The government initiated a subsidy program for agricultural insurance premiums on Magh 1, 2069 BS (January 15, 2013 AD). The latest operational guidelines—which encompass insurance for agriculture, livestock, and medicinal herbs—have streamlined the processes for subsidy distribution, budget management, and payments. Since farmers are eligible for government subsidies, the government has been encouraging those engaged in agriculture and livestock farming to insure their produce and livestock, thereby providing financial protection against potential risks.
In the Sudurpaschim Province, the responsibility for providing insurance services has been assigned to various companies, organized by district. Specifically, 'Rastriya Beema Company' has been assigned to Kailali, Doti, and Bajhang; 'Nepal Insurance Company' to Darchula, Baitadi, Dadeldhura, and Kanchanpur; and 'United Insurance Company' to Bajura and Achham.