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.