Pokhara, 28 January | Despite a generous policy where the federal government covers 80% and the Gandaki Province government handles the remaining 20% of premium costs, farmers in Kaski remain largely disinterested in agricultural and livestock insurance. This unique arrangement essentially means that farmers can secure their investments without spending a single rupee out of their pockets. However, during a recent stakeholder interaction organized by the District Coordination Committee (DCC) Kaski, officials expressed deep concern over the lack of participation. DCC Chief Liladhar Paudel highlighted that even with total premium coverage by the state, the expected surge in insurance enrollment has not materialized. He emphasized that identifying the root cause behind this disinterest is crucial for the sustainability of commercial farming and risk management in the region.
Manhar Kadariya, Head of the Economic Division of Pokhara Metropolitan City, attributed this trend primarily to a significant lack of awareness and a failure in communication. He noted that while the government is eager to provide financial security, farmers often do not realize the necessity of insurance until a disaster strikes. Kadariya pointed out that there is even an additional 15% discount available for those who insure their crops or livestock in groups, yet the uptake remains low. He suggested that there has been an insufficient assessment of the returns on insurance subsidies and urged for a more proactive approach to educate the farming community. Interestingly, livestock insurance—specifically for cattle, buffaloes, fish, goats, and poultry—has seen slightly more traction compared to crop insurance, yet the overall numbers remain disappointing.
National data from the Agricultural Census 2078 (2021) reveals that only 4.4% of farmers across Nepal—approximately 182,441 individuals—have insured their agricultural assets, with a staggering 84% of those being livestock farmers. In the fiscal year 2023/24, the government spent over 1.61 billion rupees on premiums, while farmers received 848 million rupees in claim settlements. Although the program was formally launched on January 14, 2013, it has struggled to reach the masses effectively. During the interaction, Assistant Chief District Officer Chitrangat Baral and Shambhu Prasad Mishra, head of the Nepal Insurance Authority Gandaki, stressed the importance of simplifying the claim process and conducting grassroots campaigns to bridge the gap between policy benefits and farmer participation.
