Arooj Zulfiqar

Crop insurance is one of the best tools to protect farmers, particularly small landholders, against losses caused by natural disasters, so they must register for the government’s crop insurance initiatives to be compensated for such losses.This was stated by Irshad Khan Abbasi, Head of Innovation and Integration, Pakistan Poverty Alleviation Fund (PPAF).

Talking to WealthPK, he said, “Crop insurance provides financial protection to farmers against crop losses caused by natural disasters like floods, droughts and locust attacks. The insurance covers the cost of the crops that have been damaged or destroyed due to natural disasters. This provides a safety net for farmers who might otherwise suffer significant financial losses,” he explained.

He said crop insurance is essential for the survival of the farming community in Pakistan as farmers are often left with no means of support when a natural disaster strikes. “By registering for crop insurance, farmers can ensure that they have financial protection in the event of a crop loss.”

He said the Punjab government had launched various crop insurance programmes. “These initiatives provide coverage for a variety of crops, including wheat, cotton, sugarcane and rice. Farmers who register for these programmes pay a small premium, which is calculated based on the value of their crops.”

“In terms of agricultural insurance, Pakistan lags considerably behind the rest of the world. A lot of farmers in developed countries use agriculture insurance as a form of financial protection,” Irshad Khan Abbasi pointed out.

He said Pakistan is largely an agricultural country, where the majority of the population is dependent on farming. However, unfortunately, farmers suffered losses due to natural calamities, and were often not compensated.

It is to mention here that the Punjab government's agriculture department has asked farmers, who have planted wheat, canola, sunflower, cotton, and paddy crops to register for the province's crop insurance (Takaful) programme, which would cover the Rabi 2022-23 and Karif 2023 crop seasons.

The facility is applicable for farmers of 27 districts, including Sheikhupura, Sahiwal, Lodhran, Rahimyar Khan, Faisalabad, Multan, Muzaffargarh, Narowal, Bakhar, Dera Ghazi Khan, Kasur, Khanewal, Layyah, Mandi Bahauddin, Bahawalnagar, Bahawalpur, Okara, Vehari, Khushab, Jhang, Chiniot, Pakpattan, Toba Tek Singh, Sargodha, Mianwali and Hafizabad.

Under the scheme, the farmers would get compensated for climate change, natural disasters and locust attacks.The premium payment subsidy would be 100% for farmers with up to five acres of land, and 50% for those with five to 50 acres of land. An online system has been introduced to ensure transparency in disbursement of the insurance.Agriculture accounts for 22% of Pakistan’s GDP. Over 37% of the labour force in the country is attached to the agriculture sector and over 65-70% of the population depends on agriculture for its livelihood.

Credit: Independent News Pakistan-WealthPk