Why Bangladesh needs agricultural microinsurance
Resource ID
10923
Access
Open
Contributed by
admin
Other
Microinsurance small farmers agriculture climate change floods drought
Date
18 September 21
Country
Bangladesh
Summary
Bangladesh needs to adopt policies to promote agricultural microinsurance for small farmers. Small farmers are the backbone of the rural areas, where two-thirds of the population of Bangladesh live. Despite recent progress, many live at or below the poverty line and are exposed to major weather-related crop risks. Climate change is exacerbating these weather risks, causing extreme rainfall and temperatures that destroy crops and leave these farmers vulnerable. Annually, 10-20 percent of crops are lost to severe flooding, drought, flash floods, storm/cyclone surges and other weather events. The lack of insurance discourages these small farmers from investing in better seeds, fertilisers and farm equipment by "self-insuring"—basically storing some of last year's seeds. Studies show that insured farmers are more likely to invest in new crops, improved seeds and fertilisers, and land improvement.
Source
The Daily Star