September 12, 2021 | Investopaper
The government has increased the subsidy for premium in agriculture and livestock insurance. Finance Minister Janardan Sharma on Friday amended the budget of the current fiscal year in the parliament. In the budget, he announced to provide 80 percent subsidy in the premium amount for insuring crops and livestock.
With this new provision, farmers will have to pay only Rs 20 out of Rs 100 premium when insuring crops and livestock. The companies will get Rs 80 from the Ministry of Agriculture and Livestock Development.
Although the government has provided subsidy to expand access to agricultural insurance, the expansion of insurance has not increased. The Insurance Board has instructed the insurance companies to do the work of agricultural insurance by specifying the districts.
The government had started the program of giving 75 percent premium subsidy for crop and livestock insurance from the fiscal year 2069/70. In the ordinance budget brought by the then Finance Minister Bishnu Poudel on Jestha 15, the subsidy on the insurance premium was reduced to 50 percent.
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