A weather index-based crop insurance is set to be introduced in pilot projects in several parts of Myanmar, starting today.
According to the Ministry of Agriculture, Livestock and Irrigation deputy permanent secretary U Myo Tint Tun, the insurance scheme is to protect farmers against crop damage, The Myanmar Times reported.
U Ye Min Aung, an executive with the Myanmar Agribusiness Public Corporation (MAPCO), and U Chit Khaing, an official from the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), submitted a proposal for the scheme.
The crop insurance system will be implemented via the Myanmar Agricultural Development Bank in cooperation with Sompo Japan Insurance firm, U Ye Min Aung said.
The crop insurance scheme will be sold only to the farmers who have a farm ownership certificate.
The weather index-based insurance will begin for paddy farmers first. “If the rain fall is below 112 mm, the farmers will be entitled to an indemnity. We have submitted the plan to the Insurance Industry Scrutiny and Supervisory Committee. After getting approval, we will start pilot projects in Pyay and Shwebo,” he added. The pilot schemes will be extended to other regions and states.
Future plans include flood insurance and insurance for culling animals as a result of disease control, U Ye Min Aung added.
“If a disease like bird flu breaks out, animals have to be culled and we will also implement an insurance system for this,” he said.
Farmers suffer crop damage every year in Myanmar because of floods.