Kathmandu. Agriculture plays an important role in Nepal’s economy and social structure. Although a large proportion of the population is directly dependent on agriculture, natural disasters, climate change, and market fluctuations pose constant risks to farmers.
Bearing the brunt of these risks, farmers’ livelihoods are repeatedly plunged into uncertainty. In such a situation, agricultural insurance can be an effective solution. This not only provides financial security but also ensures continuity of agricultural production.
Agricultural insurance has been established as an essential financial service in many countries around the world. In Japan, for example, crop insurance is mandatory. China has an insurance system for livestock damage caused by epidemics. Such initiatives will help ensure financial security of farmers.
In addition, agricultural insurance programs exist in various countries of the European Union. This insurance system provides financial support to the farmers and maintains the stability of the agricultural sector.
There are many obstacles to the expansion of agricultural insurance. Lack of awareness among farmers, high premiums, limitations in information technology infrastructure and crisis of trust are limiting the sector. Sometimes the insurance structures don’t match the actual damages. As a result, farmers do not get the expected benefits. As a result, they are reluctant.
However, the potential of this area cannot be ruled out. With the right policy support, government subsidies, use of modern technology and effective monitoring system, agricultural insurance can ensure the financial security of farmers. This will make it possible to mitigate the effects of natural disasters or climate change and ensure production sustainability.
Agricultural experts believe that agricultural insurance is not just a financial mechanism but a safety net for farmers. It stabilizes rural economies, instills confidence in agricultural investment, and strengthens food security in the long run. In an agricultural country like Nepal, successful implementation of agricultural insurance will improve the living standard of farmers and provide a strong foundation to the national economy.
