What happened
The Agricultural Insurance Fund under the Ministry of Agriculture has begun operating in Uzbekistan. The new organization will become the basis of the insurance system in the agricultural sector and will compensate for the damage to plants and animals from natural and man-made disasters, fires, pests, and diseases.
Why is this important
- The new system will reduce the financial risks of farmers and agricultural producers.
- Increasing agricultural insurance coverage will stimulate the growth of agricultural production and increase the industry’s resilience to adverse events.
- Reimbursement of up to 50% of the insurance premiums from the state budget will make insurance accessible for most farmers.
Numbers and facts
- By 2030, it is planned to cover 50% of agricultural producers with agricultural insurance.
- This will increase the growth of agricultural production by 20%.
- The Ministry of Agriculture will launch the “Agricultural Insurance” information system and integrate it with the platforms of other government agencies.
- With the help of the new system, it will be possible to formalize insurance contracts, receive subsidies to cover insurance premiums, and apply for compensation payments.
- The established capital for the start of the system will be 35 billion soums.
Training of personnel
- By February 1, 2026, it is planned to train at least 5 independent experts in each region.
- By March 2027, train another 600 experts to determine the presence of an insured event and the amount of damage.
Context
- Until now, agricultural product insurance in Uzbekistan was limited.
- This made farmers vulnerable to crop losses due to various reasons.
- Now, the state is systematically strengthening support for the agricultural sector through concessional loans, subsidies, and the digitalization of processes.
- The creation of the fund and the integration of the information system with other platforms ensures transparency and automation of the processes.
