Crop insurance will become mandatory for grantees

Crop insurance will become mandatory for grantees

Yeldos Auezbekov, a member of the board of the Agro Insurance Association, at a meeting in the government under the pretext of attracting foreign reinsurance companies, put forward the idea of obliging recipients of state support to insure crops, World of NAN reports. 

"We are negotiating with existing reinsurance companies in Switzerland. Some German companies are ready to raise the limits to 15 million hectares, but they are waiting for us to guarantee volumes from the government. We can guarantee volumes if there are counter obligations for recipients of state support measures (subsidies and soft loans). If a farmer insures at least 20% of his acreage, it will make it possible to avoid bankruptcy in the event of drought and excess moisture," Yelodos Auezbekov told the cabinet. 

Unfortunately, he managed to influence the country's deputy prime minister, Serik Zhumangarin. Of course, no one wanted to think about the shortage of working capital among farmers. Therefore, agrarians should get ready for new spending or refusal of state support altogether. 

"We will change the system of subsidies and make counterclaims to farmers for receiving them. The state spends its resources in order to get a result. And the result is food security and provision of raw materials for our enterprises. And one of the obligations will be insurance. In addition to the existing instruments, it is necessary to develop additional types of insurance: against crop failure and damage from locusts. We are ready to consider all proposals," concluded Serik Zhumangarin.

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