In June 2019, a law on agricultural insurance was adopted in Azerbaijan. In August 2019, by the decree of Azerbaijani President Ilham Aliyev, the Agricultural Insurance Fund was established. Now, a decree has been signed in Azerbaijan’s Cabinet of Ministers on products subject to agricultural insurance, Trend reported.
As much as 5 million manat ($2.9 million) was allocated to the state budget of the Agricultural Insurance Fund for 2020. It was also decided to carry out its work in stages, because Azerbaijan’s experience in calculating tariffs in the field of agricultural insurance and the assessment of insurance risks and losses aren’t at the needed level.
In the field of crop production, at the initial stage, wheat, barley, corn and potatoes will be insured in order to strengthen food safety and reduce the dependence of the vegetable oil industry on sources of raw material imports, and sugar beets will be insured to support the development of sugar beets in Azerbaijan.
In order to replace imports and strengthen export potential, orange, lemon, tangerine, tea, tobacco, nettle, grapes, hazelnuts and cotton will be insured. The Agricultural Insurance Fund, which will take on 50 percent of the risks, will also be involved in the insurance of these products.
Joint insurance of the above mentioned products by the Agricultural Insurance Fund and private insurance companies will reduce investment risks and strengthen the safety of farms, provide conditions for the expansion of production.
