CNI News
28 September 2023
As there are attempts to arise a crop insurance system for Myanmar farmers, whether the system can protect them or not should be carefully carried out, said farmers to CNI News.
Because the crop insurance system was the weather index insurance based on rainfall, it was unlikely that the system would protect farmers, pointed out farmers.
In order to properly manage and protect losses due to climate change with an insurance system, after forming a joint task force which contains government and private led by the Myanmar Insurance Enterprise, they are carrying out to arise a crop insurance system, said in a statement released by the Myanmar Rice Federation.
As there was not much variation in annual rainfall inches in Myanmar, if the crop insurance was based on rainfall inches during a year, it would not convenient for farmers, said U Thein Aung, chairman of the Farmers Development Association, to CNI News.
" For example, this year, in a total of 80 inches for a year, in the four months of rainy season, if there are 20 inches in a month, it is no problem. But if there were 40 rainfall inches in July and 10 inches only in the rest months each. In the end of the year, there might be 80 or 90 inches for a year round. But if it rained heavily in a month to reach up to many inches, plantations would be damaged by flood. There is not a very wide gap of rainfall inches between last year and this year or between this year and next year. The difference is 10 inches at most. If you are going to measure and set with that rainfall, this insurance business will have problems. There is a possibility of an argument," he said.
While the relevant parties were meeting and discussing to implement the crop insurance system
The insurance system should contain the percentage of damage per acre that will get insurance compensation if there are plantations that are damaged by heavy rain and if only half an acre was damaged, insurance compensation would be paid, which should not be, pointed out farmers.
As there are various rainfall inches depending on regions, it should be taken into account and insurance system should change, depending on regions, suggested some people.
Because Myanmar people are weak in knowledge about insurance system, it is necessary to make awareness processes for farmers, said Ko Zaw Min Naing, an agricultural and economic advisor, to CNI News.
“If the insurance was designated consistently on all regions, it would not convenient because the crops are different depending on regions. I've heard that insurance companies don't take risk so much in this insurance system. If there were organizations that measure rainfall regularly, the insurance might be okay. But there's one thing is that farmers in Myanmar don't know about the crop insurance pretty well. So, firstly campaigns and awareness processes need to be performed to make farmers know about the insurance. After that, if the insurance system is implemented, there is a possibility. Farmers and insurance companies like this system in other countries. It is not a conventional insurance based on crop damage due to climate change and is based on rainfall. So, farmers can choose the plants based on rainfall." he said.
As this insurance is already widely implemented in other countries, under the direction of the Head of State, this insurance will be started, said the Myanmar Rice Federation.
Discussions are underway to introduce this crop insurance system in the cold season based on Farmer Participatory Approach reportedly.
