National Agricultural Insurance Policy (NAIP) 2021

Abstract

The Agriculture Sector has recorded impressive growth since independence though many challenges persist in achieving food and nutrition security; transforming agriculture from subsistence to commercial production; improving access to markets; efficient use of inputs and accessing agricultural credit and insurance among others. Risks and uncertainties are inherent in agricultural production systems as producers are exposed to various disasters owing to vagaries of weather, biological perils that include pests and disease outbreaks, idiosyncratic risk such as hail and fire and systemic risks covering large areas. These disasters severely disrupt agricultural production resulting in vulnerability of producers and other value chain actors. The Government has identified agriculture insurance as one of the ways to de-risk the agriculture sector and reduce vulnerability of farmers and other value chain actors. However, agriculture the adoption of agriculture insurance in the country has a risk mitigation measure has failed to reach scale due to many challenges.