Chandeni Livestock Insurance Cooperative (CLIC) of Chandeni Mandan VDC has a huge liability to settle after 197 cows and water buffaloes, 239 goats, 38 pigs and 3,000 chickens in the VDC died in the earthquake.
“As per the agreement, we need to provide 80 percent of the insured amount as compensation to the farmers. This means we have to pay farmer around Rs 3.8 million,” Krishna Prasad Nepal, president of the cooperative, told Republica. “How can a small institution like ours with paid-up capital of Rs 4.5 million pay Rs 3.8 million to farmers?” Nepal wondered.
He also said Rs 2.2 million of the cooperative’s paid-up capital cannot be withdrawn from bank. “This means we won’t be able to compensate the farmers for the loss of insured livestock,” added Nepal.
Locals farmers had insured their water buffaloes at Rs 60,00 and cows at Rs 35,000.
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Earlier, the cooperative had assured farmers that it would release compensation amount after it receives insurance premium subsidy amount from the government. But the government’s decision of stopping such subsidy has put the community-run cooperative in trouble.
“Despite our low paid-up capital, we had thought that we would be able to compensate farmers for the loss through government’s premium subsidy program,” Nepal said, adding: “But the government decision to discontinue subsidy to cooperatives, who received such facility for three straight years, has made things difficult for us.”
Anil Upadhyay, deputy general manager of Agricultural Development Bank Limited (ADBL), Kavre, said the bank had already informed the cooperative about subsidy cut. “As the government has allocated only Rs 5 million for the purpose, we decided to provide subsidy to new cooperatives.”
Stating that the government was aware about the woes of Chandeni Livestock Insurance Cooperative and the loss suffered by local farmers, he said the bank can distribute subsidy to all cooperatives if the government allocates more fund for the purpose.
“If we do not get subsidy amount from the government, we will distribute the amount, whatever is available, equally among all farmers,” Nepal said.
