The Ethiopian Insurance Corporation has extended micro insurance coverage to 189 farmers whose harvest was affected by last year’s El Nino induced drought. The Corporation will pay 357,665 Br to farmers in Oromia Regional State, Eastern Shoa Zone. EIC gives up to 100pc reimbursement in case of full damage.
Prior to this, the same farmers were beneficiaries of the same service. Starting from July, 2016, close to 407 farmers were offered the service as a pilot program where farmers in Eastern Arsi and Shoa zones received the support.
The amount of money provided for each individual farmer varies based on the size of their farmland, and their productivity level as well as the cost of inputs used while harvesting. In return, farmers are expected to pay 10pc of the total cost of inputs used as a premium. Farmers in Ethiopia spend up to 2,500 Br for cost related with fertilizers and other necessary inputs for their farming.
Last year’s drought affected close to 10.2 million people across Ethiopia. It was one of the largest scale droughts in the past 30 years. The drought brought on failed Belg and Meher harvest seasons in some areas of the country. The harsh weather has affected 56pc of the country’s agricultural yields. Last year El Niño affected close to 60 million people in the world, out of whom 16pc were in Ethiopia
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