Agriculture Ministry head: from 2018 Armenia launches pilot program of agro-insurance program and installation of anti-hail networks

ArmInfo. From  2018 Armenia  launches pilot program of agro- insurance program and installation of  anti-hail networks

"We hope that in 2-3 years Armenian economy will reach the necessary  level for the formation on the correspondent market - effective  demand for the full implementation of programs. Otherwise, it will be  necessary to find mechanisms of assistance for the implementation of  these programs, since without them it will be impossible to ensure  the solution of the sphere's tasks, "Armenian Minister of Agriculture  Ignatiy Araqelyan said after the Government meeting on June 15,  commenting on the ways of assisting villagers to eliminate the  consequences of the damage inflicted on them as a result of strong  winds, rains and hail.

According to the words of the Minister, Armenian Government works in  the direction of providing financial support to the peasants to  eliminate the consequences of damage to  Armavir, Aragatsotn and  Tavush districts  of the republic. "Possible  financial mechanisms of  support can become freezing or delaying the fulfillment of credit  obligations of the villagers. It is also possible to grant them a  grace period-a grace period for paying interest on loans,"  Agriculture Minister said. 

At the same time, according to Armenian Agriculture Minister, the  given assistance tool cannot be a solution to the current situation,  since it will not provide full compensation for the damage suffered  by the villagers. Rescue for farmers, according to Ignatiy Arakelyan,  may be the introduction of an agricultural insurance system, as well  as the installation of anti-hail networks, which, although they are  long-term and expensive tools - often inaccessible to every farmer,  but which will compensate the damage totally . These directions,  according to the Minister, are already included in the Government  agenda as a component of agricultural development.

To note, talks  that the introduction of agricultural insurance has  no alternative and can be the only working life-circle for an  Armenian farmer responsible for the sphere has been exaggerating for  more than 10-15 years. The last time the topic was returned in  December 2016, when the German Development Bank KfW stated that in  order to conduct research in the direction of introducing the  institute of agricultural insurance in Armenia will provide 1 million  euros. As the Deputy Minister of Agriculture of Armenia Armen  Harutyunyan stated then, within 2 years the Armenian side conducted  joint work with KfW. Based on this, in 2017 it is planned to develop  a pilot program, as well as bring it in line with the requirements of  the legislative field. The program will focus on insurance of  profitable lines of agriculture, he said.