ISLAMABAD-Agricultural insurance is crucial for ensuring farmers financial security in the wake of extreme events, which often cause extensive damage to their crops. However, unfortunately, agri-insurance has not attracted significant attention in Pakistan primarily because the country’s agricultural sector is riskier due to a range of factors.

 Talking to Wealth, Irshad Khan Abbasi, Head of Innovation and Integration at Pakistan Poverty Alleviation Fund PPAF, said Islamabad had consistently lagged behind the rest of the world in terms of agricultural insurance. A lot of farmers in developed countries use agriculture insurance as a form of financial protection. Such type of insurance is vital for a country like Pakistan, a largely agrarian nation, where agriculture accounts for 22 of GDP, and at least 37. 4 of the labour force is attached to the sector, meaning over 65-70 of population depends on agriculture for livelihood, he explained. Irshad Abbasi said as Punjab met almost 76 of the country’s total agricultural needs, so there was a dire need for introduction of agro-insurance in the province. He pointed out that for the first time in 1983, livestock insurance was introduced in Pakistan, but the endeavor remained unsuccessful.

For the success of any agro-insurance programme, it is essential to connect farmers with banks, a crucial step in overcoming financial vulnerability of growers in the event of losses to their crops, he said. The PPAF officer said enabling farmers access to banking facilities would help them cope with the effects of floods, droughts, locust attacks, or fires as they would be assured of being compensated for losses.

Original Link: https://www.nation.com.pk/04-Dec-2022/agri-insurance-essential-for-farmers-economic-security