Which fund will compensate for damage caused by drought in Azerbaijan?

17:11 - 2.10.2023

October 2, Fineko/abc.az. Drought insurance in Azerbaijan may be included in the list of risks of the Agricultural Insurance Fund.

ABC reports AIF chairman of board Fuad Sadigov told journalists about this.

He said that drought insurance is one of the most important tasks of the Fund:

"Our country is in Top 10 in the list of drought-prone countries. We are currently analyzing in what form we can provide farmers with drought protection. This year, about 200,000 hectares of country's sown areas have been subjected to drought. Our task is to provide this service to farmers in the next period. We know in advance that this is harmful insurance coverage. If we look only at Turkish experience, 900 manats were paid for every 100 manats received. It is known in advance that the collected insurance premiums will be many-fold less than the payments for these territories. This will lead to change in tariffs. We are trying to expand the system so that stability is ensured. Today, the agricultural insurance service is just being formed. If we bankrupt the fund by providing drought insurance as an agricultural insurance service from the first days, we will destroy the future of this system. Therefore, we have planned phased development and we think that in the following periods we will provide farmers with this guarantee, even if not loss of income in one form or another, but at least in the amount of covering production costs."

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