Latest estimates indicate that about seventy thousand farmers have so far accessed the agriculture Insurance premium subsidy scheme. But the Central and Western Uganda have seemingly taken the lion’s share of the premium now at about 40% according to study by Economic Policy Research Centre EPRC.
Despite having worst-crop
production and increase in climate-related disasters, farmers in Eastern and Northern
Uganda have the lowest uptake for agricultural insurance cover.
The Uganda Agricultural
Insurance Scheme (UAIS) a Public Private Partnership (PPP) arrangement with
Uganda Insurers Association (UIA) has been operational since the 2016/2017 financial
estimates indicate that about seventy thousand farmers have so far accessed the agriculture
Insurance premium subsidy scheme.
But the Central and Western Uganda
have seemingly taken the lion’s share of the premium at 40%
respectively according to study by Economic Policy Research Centre EPRC.
The study shows that Northern
Uganda has the lowest uptake of the premiums with a slightly above seven thousand
farmers or 10.5% of the beneficiaries nationally.
Eastern Uganda according to the
report had about two thousand farmers compared to close to 18000 farmers in the
Central and over twenty-three thousand farmers in Western Uganda.
Florence Nakazi, a
research analyst with the Economic Policy Research Centre (EPRC) says the low number
beneficiaries from Eastern and Northern Uganda was due to limited awareness in
those regions and the country as a whole.
The study findings
did not document who exactly was benefiting from those insurances covers. Florence
Nakazi did not rule out the fact that small-holder farmers have not benefited.
Coffee farmers In Eastern, South Western
Other studies found
that drought constrained the coffee yield leading to harvests below the
recommended 600 kilograms per hectare.
But the EPRC report says the coffee
index insurance cover by Union of Coffee Agribusiness and farm
enterprise(NUCAFE) covered mainly farmers from Central and yet the crop is cultivated
in other regions.
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She says experience
from Kenya has showed increased uptake of the insurance cover because of mass
A number of insurance
firms around the country are provide agricultural insurance cover to farmers
under the National Agricultural Insurance Scheme.
The cover areas of
a Multi-peril insurance
targeting crops and livestock insurance cover, Drought Index insurance for crops
only and Aquaculture insurance for fish farms fish fry hatcheries.
The Economic Policy Research Study
also discovered other anomalies related to the implementation of the
Agricultural Insurance Scheme.
It says the insurance cover were
only related to production risks yet farmers face more risks other than
The Multi-peril insurance
according to the report covers multiple production risks while the index
insurance is limited to losses incurred by farmers due to drought and excessive
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Misses out on the Scheme”///
The recommend linking up farmers
to markets as one of the avenues of increase uptake of insurance products.
John Makosya, the Consortium
Officer with Uganda Insurance Association’s the Agro consortium told a recent Uganda
Banker’s Association Annual Conference that efforts were being made to ensure that
the scheme benefits smallholder farmers all over the country.
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It was hoped that once well-implemented,
farmers would have protected against the effects of agriculture risks by
introducing insurance covers.