Crop Insurance, an initiative spearheaded by the private sector, has emerged as a vital safety net that preserves the aspirations of farmers amidst the challenges posed by extreme weather conditions. Throughout history, climate change has persistently tested the reliance of our farmers.
According to a study, Bangladesh ranks among the top ten vulnerable countries in terms of risks associated with extreme weather events. Over the past few years, excessive rainfall during March-April and July-August has led to waterlogging, soil erosion, submergence of agricultural lands. Paddy fields, which are the crucial for country's food security, have been adversely affected, resulting in a significant decline in production. Extreme weather events in Bangladesh not only destroy stand- ing crops but also disrupt the entire agriculture value chain, including storage, transportation, and marketing. Over the span of four decades, weather challenges have caused agricultural losses amounting to over USD 10 billion.
In Bangladesh, the Crop Insurance initiatives were piloted in 2016 with the Surokkha project, jointly funded by the Syngenta Foundation for Sustainable Agriculture Bangladesh (SFSA). SFSA Bangladesh successfully piloted weather index insurance for key crop crops, implementing the "Boosting Agriculture Risk Mitigation in Bangladesh through Climate Insurance for Smallhold- ers Project" with support from the InsuResilience Solutions Fund, in collaboration with insurance partners Green Delta Insurance Company Limited and Sadharan Bima Corporation.
In 2020, Syngenta Bangladesh and Syngenta Founda- tion forged a strategic partnership, where Syngenta played a leading role in terms of connecting growers through its robust grower network, creating awareness and capabilities and importantly, incentivizing farmers to avail crop insurance solution along with product and agronomy services. Furthermore, eligible farmers receive weekly weather forecasts and agricultural advice through voice calls throughout the coverage period.
The primary objective of this initiative has been to safeguard the livelihoods of farmers in the face of extreme weather conditions. This remarkable first of its kind solution in Bangladesh, holds tremendous poten- tial in transforming the fortunes of our farmers. To date, Syngenta Bangladesh has brought over 0.6 million farmers across the country under Crop Insurance, facilitating the disbursement of insurance claims exceeding Tk 79 million.Under this insurance scheme, if a farmer’s crop is damaged due to adverse weather, they are eligible to receive an insurance claim from the insurance company to compensate for the loss. This insurance policy specif- ically covers the risk of excessive rainfall and inadequate rainfall in different regions, primarily focusing on Boro and Aman paddy cultivation. An insured farmer can receive upto 80% of the sum assured.
Insurance policies and claims related processes are facilitated through ’ Krishite Syngenta’ Retailer, which represent the largest retail force in the agricultural industry in Bangladesh. All relevant information concerning insurance policies and claims is disseminat- ed through SMS periodically to ensure full transparency and clarity among farmers.
For smallholder farmers, Crop Insurance in Bangladesh serves as a safety net against weather-related risks, thereby enhancing access to credit and fostering a favorable lending environment. This, in turn, encourag- es the adoption of resilient farming practices and innovative technologies, leading to improved productivi- ty and reduced risks. It supports income stability for farmers, reduces poverty, and promotes agricultural development. While standing beside farmers with crop insurance solution, Syngenta Bangladesh is also closely working with few financial institutions to develop a financial eco-system where farmers can avail funding with lowest cost of capital.
This joint initiative marks the beginning of a new era for our farmers and the country. Not only does it ensure the livelihoods of farmers, but it also encourages more individuals to embrace farming as a viable and stable business proposition. Ultimately, this will contribute to greater food security in our densely populated nation.
