Posted on August, 6, 2019 at 10:43 am
NATIONAL Insurance Corporation (NIC) has introduced insurance scheme to protect farmers against huge losses due to hostile weather conditions. Under the scheme, covered farmers will be compensated for weather related losses.
The scheme, the first of its kind in the country, was unveiled here over the weekend described as an effective povertyeradication initiative.
Simiyu region’s cotton farmers will be the first beneficiaries of the scheme whose benefits include coverage of losses caused by crop failure and ability to repay loans.
Minister for Agriculture Japhet Hasunga said introduction of crop insurance was meant to revamp the agricultural sector by addressing issues that have been impeding its advancement.
“We are glad that finally we have this new scheme which is a salvation to the farmers.
This insurance will start by covering cotton but by next year, it will be ready to include at least five other crops,” said the minister while launching the scheme at the farmers’ exhibition week here.
He explained that the move testified the government’s determination to make the sector a competitive contributor to the national economy. NIC Managing Director Dr Elirehema Doriye told ‘Daily News’ shortly before the launch that the insurance will cover all crops in phases. Initially, it will cover crop physical losses or damages due to droughts, uncontrollable diseases or pests, flooding and windstorm.
“The amount insured for any crop is based on production costs or pre agreed nominated value of harvested crop,” said Dr Doriye. He said Simiyu was picked as the starting point on the basis of the region being the producer of over 50 per cent of the country’s cotton.
Dr Doriye said after cotton, the scheme will move to coffee farmers in Kagera and then nine other strategic crops—wheat, maize, paddy, sunflower, cashew nut, barley and tea.
Potential beneficiaries will be required to fulfill basic procedures, including submission of actual production per annum, cost of production per acre and expected selling price per unit of the produce.
Claim settlement will be based on yield shortfall below guaranteed percentage as a result of any of the listed perils and will be due for payment at the end of the crop season unless there is total loss occurring during the insured crop growth period.
Farmers are encouraged to embrace the insurance cover because of its numerous advantages, including guaranteed return on investments and recovery of income loss.
Other benefits include crop insurance, reducing the need for liquid cash and emergency borrowing in case of loss as well guaranteeing peace of mind, all of which boost productivity.
Simiyu Regional Commissioner Anthony Mtaka and Chairman of Cooperative Commission Dr Titus Kamani were optimistic that the new approach will greatly boost agriculture, with the RC saying Simiyu was ready to implement the scheme.
“Simiyu has around 300,000 active farmers with the capacity of producing over 600,000 hectares per season. We are for this new innovation,” said Mr Mtaka.
Tanzania Insurance Regulatory Authority (TIRA) Commissioner Dr Mussa Juma urged other insurance companies to introduce similar schemes and urged farmers to grab the opportunity towards enhancing their prospects.
Source: Daily News