Cambodia: Rice sector wants farm insurance
Source: Asia Insurance Review | Feb 2017
The Cambodia Rice Federation (CRF) has been holding talks with several relevant parties about promoting insurance cover for agricultural products.
Mr Sok Puthyvuth, CRF President, said that insurance is needed to strengthen the farming sector, particularly the rice sector which faces plummeting prices and limited access to foreign markets.
He added however that several issues need to be addressed first, reported Khmer Times.
He said: “We don’t know how much an insurance package costs because the price depends on information, the production situation and planting know-how. Also we have to check many other aspects to ensure the price is acceptable and the coverage can protect farmers.”
“Many risks have been found, so some banks and insurance companies don’t dare step in until they’ve collected enough information and have a clearer understanding,” Mr Puthyvuth added. “If they provide this insurance now, the price of insurance will be too high and won’t be acceptable.”
Farm insurance is new in Cambodia. One insurer, Forte Insurance, has been offering cover for agricultural products such as rubber, corn, cassava and rice in Battambang province since 2015. The Cambodian Centre for Study and Development in Agriculture has also introduced microinsurance to help farmers.