Government to Provide Rs 2.19 Billion in Subsidies for Agricultural and Livestock Insurance

Kathmandu — The government will provide around Rs 2.19 billion in subsidies for crop and livestock insurance in the current fiscal year 2026/27 to reduce risks and losses in the agricultural sector and strengthen farmers’ financial security, according to the Ministry of Agriculture and Livestock Development.

The government has prioritized insurance support to help minimize agricultural losses caused by natural disasters, diseases and other unforeseen events, protecting farmers from substantial financial burdens.

Government to Cover 80% of Insurance Premiums

The government has approved and implemented the Procedure for Providing Subsidies on Premiums for Agricultural, Livestock and Herb Insurance. Under the scheme, the government will cover 80% of the total premium for agricultural and livestock insurance, while farmers will pay the remaining 20%.

For example, if an agricultural or livestock insurance policy carries a premium of Rs 10,000, the government will subsidize Rs 8,000, leaving the farmer to pay just Rs 2,000.

Minister for Agriculture, Forests and Environment Geeta Chaudhary said the federal, provincial and local governments were working together to reduce agricultural losses caused by disasters and provide relief to farmers.

“The government has been providing subsidies on premiums for crop, livestock, poultry and fish insurance to reduce risks faced by farmers,” she said.