Proper insurance system can strengthen agriculture sector: FPCCI

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The federation of Pakistan Chamber of Commerce and Industry (FPCCI) on Sunday said a proper insurance system can strengthen the agriculture sector and address the menace of food insecurity.

The government and private sector should take steps to provide protection to life, health and assets of farming communities which are facing multiple problems and exposed to natural disasters, said chairman of FPCCI Regional Committee on Industries Atif Ikram Sheikh.

In a statement issued on Sunday, he said that farmers can be saved from impacts of viruses, drought, flood, insects, natural disasters, weather, rains and other risks if the government promotes the agricultural insurance.

Atif Ikram Sheikh said that agricultural yields could go up by thirty percent if cultivators try improved methods while we can have a better livestock yields if proper steps are taken.

Insurance companies need to be encouraged to offer a wide range of schemes including crop yield insurance and crop revenue insurance, he said.

He said that there should be a mechanism in place to provide training to companies in the area of agricultural risk management and to equip them to identify opportunities and develop products that help mitigate risks.

Insurance does not and cannot obliterate risk, it spreads risk, and insurance alone was not enough to solve the problems of growers.

It is also important to provide farmers with good agricultural practices and services that allow them to improve productivity.