The Ministry of Agriculture and Food Security (MAFS), in collaboration with the United Nations Capital Development Fund (UNCDF) and other partners, has validated the National Agricultural Insurance Policy at the Bintumani Hotel. This initiative aims to enhance insurance coverage for farmers and mitigate risks in agriculture, contributing to the Feed Salone agenda.
During the validation meeting on Tuesday, 23 September, Minister Dr. Henry Musa Kpaka stated that the finalised policy will be presented to Cabinet for approval before being rolled out with relevant stakeholders. He mentioned that specific agricultural value chains will be prioritised for pilot projects during implementation.
Dr. Kpaka described the Agricultural Insurance Policy alongside the Agricultural Finance Policy as interconnected, noting that effective insurance can lower risks for both farmers and financial institutions. This, he explained, would boost the confidence of banks to finance farmers, facilitating increased investment and growth in the agricultural sector.
The Lead Consultant for the policy development, Ayandev Saaha from K.M. Dastur & Company Limited, highlighted the inclusive nature of the development process, which involved key stakeholders from the agricultural and financial sectors. He emphasised that agricultural insurance would help farmers manage production risks, encouraging them to sustain and expand their operations while improving access to finance.
Participants at the validation meeting expressed support for the policy and stressed the need for effective implementation once approved. They also highlighted the importance of government backing, suggesting that a portion of insurance premiums be subsidised for farmers during the initial rollout to promote wider adoption.
