Govt plans to establish micro-insurance company

Kathmandu, Jan. 31:

Finance Minister Dr. Yuba Raj Khatiwada on Thursday said that the government had plans to promote the establishment of micro-insurance companies in the country.

"The government has given top priority to the development of agriculture. It announced interest subsidy to the farmers and implemented agriculture and livestock insurance schemes and now there is a need to establish a micro-insurance company," he said while addressing the 11^th Annual General Assembly of Nepal Agriculture Cooperative Central Federation Limited.

He said that the government was positive to collaborate with the cooperatives to establish the micro-insurance company.

"Prepare a plan and come to us. The government will support you with favourable policy making and other required instrument," he said.

He expressed concerns to the malpractices in the vegetable markets. In Chitwan, farmers have crushed their cabbage with bulldozers as they were just offered Rs. 2 per kg while consumers are paying minimum Rs. 20 per kg for the same cabbage, he said.

According to him, such pathetic situation arises mainly due to the lack of cold storage, market information and transportation facility, and middlemen. Dr. Khatiwada assured government support in facilitating the farmers to get the fair price of their products.

He also said that it was not possible to protect the domestic agricultural goods with a heavy customs duty at the entry points since Nepal's role to do so was limited due to various bilateral and multilateral trade agreement, provisions of the World Trade Organisation (WTO).

"Therefore, the farmers and producers should increase their competitive capacity and produce goods with comparative advantage that could get the market as well as good price," said Dr. Khatiwada.

Chief Whip of Nepali Congress Balkrishna Khand said that cooperative should be supported with better policy address and regulatory mechanism.

He urged the cooperatives to give priority to the organic agricultural products and discourage the use of pesticides.

Khand also asked the government to support the farmers in increasing their access to technology and agriculture inputs.

President of the cooperative Kham Bahadur Pathak said that the cooperative had been trying to support its members with latest technology and market access.

Published in The Rising Nepal daily on 1 February 2019.