Abstract
A majority of Nepalese population lives in rural areas and agriculture is their primary occupation. Growth in gross domestic product (GDP) and development of Nepalese economy mainly depend on growth and development of agriculture sector as most of the Nepalese industries are agriculture-based and export sector is dominated by commodities. The sector has an important role to increase farmer’s purchasing power. The sector has pivotal role to promote off-farm and on-farm employment opportunities as well as maintaining price stability.
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Ministry of Finance. 2017. “Economic Survey 2017/18, Singha Darbar, Kathmandu, Nepal.
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Access to insurance service is also equally important for agriculture commercialization and development. There has been some effort to enhance access to insurance services, but performance on promoting access to insurance services has been very much limited.
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It includes 17 goals with 169 targets on a broad range of sustainable development issues for post-2015 till 2030.
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The state-owned insurance company, Rastriya Bima Sansthan, does not offer any agricultural insurance or micro-insurance products.
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There has not been any effort to assess the impact of to assess the relevance, efficiency, effectiveness, impact, and sustainability of the subsidy to agricultural credit and insurance scheme, particularly on smallholder’s ability to participate in high value chains.
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Deposit in other commercial banks as short-term fixed deposit.
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This represents a growth of 20.8, 31.3, and 31.2%, respectively.
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Two districts (Kathmandu and Bhaktapur) were not assigned to any mainstream insurance companies.
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Permanent total disablement is the situation in which insured cattle results in permanent and total incapacity to function in a capacity and purpose in which it is domesticated.
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Subsidy in premium by GoN (i) FY 2012/13: Nil; (ii) FY 2013/14: 50%; (iii) FY 2014/15: 75% (contd. in FY 2015/16). GON allocated subsidy; (i) FY 2012/13 (2069/70): Nil; (ii) FY 2013/14 (2070/71): 130 million; (iii) FY 2014/15 (2071/72): 60 million + 50 million; (iv) FY 2015/16 (2072/73): 120 million; and.
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In FY 2014/15, government has allocated Rs. 120 million for the farm insurance subsidy. As of now, the policies worth Rs. 1.51 billion have been issued. Premiums worth Rs. 72.6 million have so far been collected, while the insurers have settled claims of Rs. 21.6 million.
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ADB and White Lotus Centre (2016), “Medium and Large-Scale Investment in Agriculture in Nepal Opportunities, Challenges and Way Forward” Kathmandu, Nepal.
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Dhakal, N.H. (2019). Agricultural Credit and Insurance in Nepal: Coverage, Issues, and Opportunities. In: Thapa, G., Kumar, A., Joshi, P. (eds) Agricultural Transformation in Nepal. Springer, Singapore. https://doi.org/10.1007/978-981-32-9648-0_18
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