GEORGIA: in 2019 the number of beneficiaries of the state agroinsurance program increased by 31%

10 February 2020 — Marina MAGNAVAL
In 2019, total state subsidies under the agroinsurance program amounted to GEL 5.84 million (~USD 2.02 million) while the number of beneficiaries of the program increased by 31% y-o-y, as Levan DAVITASHVILI, the Minister of Environmental Protection and Agriculture of Georgia, informed.

The state agroinsurance program covers insurance risks such as hail, flood, hurricanes and autumn frosts; the policies are issued by insurance companies participating in the program, with up to 70% of the cost being subsidized by the Georgian state.

DAVITASHVILI explained that "until 2014 there was no mechanism in Georgia which could help farmers protect their crops from climate risks. The agroinsurance program made insurance available to those farmers who have small farms and needed state support more than the others. The agroinsurance program is a tool with which agriculture became more predictable and more attractive for the stakeholders to invest", he said.

In 2020, about GEL 9 million (~USD 3.1 million) were allocated from the budget to the implementation of the agroinsurance program, meaning GEL 1 million (~USD 0.3 million) more than a year ago.

Farmers received indemnities amounting GEL 913 thousand (~USD 317 thousand) during 2019.

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