A Public Policy Dialogue on the Status and Effectiveness of Nepal’s Agricultural Insurance Programme Held
Policy Research Institute, Narayanhiti
On 12th Asar 2082 (June 26, 2025), the Policy Research Institute (PRI) organized a policy dialogue programme in its conference hall on the theme “Agricultural Insurance Programme in Nepal: Status, Challenges, and Solutions”. This dialogue was conducted as part of a study being undertaken by the Institute at the request of the Ministry of Agriculture and Livestock Development, Government of Nepal, to collect expert feedback on the draft report prepared by the research team.
The study aims to assess the implementation framework, current status, and challenges of agricultural insurance policy tools in Nepal; analyze participation, access, and protection mechanisms for smallholder farmers; review international best practices; and provide policy recommendations through an evaluation of subsidy management and insurance claim processes.
The event was attended by representatives from the Office of the Prime Minister and Council of Ministers, the Ministry of Agriculture and Livestock Development, Nepal Insurance Authority, Department of Agriculture, Department of Livestock Services, Ministry of Law, Justice and Parliamentary Affairs, and other government agencies, the Prime Minister Agriculture Modernization Project. Representatives of the Farmers’ Commission, Insurance companies, academic experts and representatives from civil society were also present at the dialogue.
The discussion session was moderated by Gopal Acharya, Associate Research Fellow at the PRI. Inaugurating the event, PRI Executive Chairperson Prof. Dr. Lekhnath Sharma emphasized the need for commercialization and management in the agriculture sector of Nepal. He presented the fact that despite the significant contribution of the agriculture sector to Nepal’s development, this major sector lacked focus from the government. He expressed hope that expert feedback would enhance the quality and effectiveness of the final report, particularly regarding the sustainability and expansion of agricultural insurance programmes.
Senior Research Fellow of PRI, Dr. Hari Sharma Neupane and member of the expert study team, Shiva Sundar Ghimire, presented the draft research report. Their presentation highlighted Nepal’s vulnerability to multiple hazards, the history and evolution of insurance in Nepal, types of agricultural insurance, existing models, international experiences, and relevant policy frameworks. The presentation also included the key data collected during the study.
During the discussion session following the presentation, participants offered valuable feedback and suggestions for improvement of the draft report. They stressed the need for policy coherence and practical cooperation among the three tiers of government, noting that a lack of coordination often causes delays and complications in the claim settlement process. Majority participants emphasized that local governments should be made responsible and empowered to ensure the effective implementation of agricultural insurance. Issues such as a lack of institutional mechanisms for insurance under federalism, the need to build institutional capacity and challenges of moral hazard were also raised. Participants suggested that risk classification, premium differentiation, and farmer categorization by land size and economic status should guide insurance policy design. It was also highlighted that the claim process should be simplified, efficient, and digitized. The discussion further revealed a lack of harmony between the Agricultural Insurance Guidelines 2079 and Operating Procedures 2081 and recommended that the study also evaluate the effectiveness of government subsidies in insurance. Participants expressed confidence that the final report would contribute meaningfully to the development and upgrading of Nepal’s insurance sector.
Concluding the event, the coordinator of the study team, Dr. Suraj Pokhrel, expressed gratitude for the insights shared and committed to incorporating the feedback into the final version of the report. Dr. Hari Sharma Neupane, Head of the Research Department and Senior Research Fellow at the PRI, closed the programme with a vote of thanks to all attendees for accepting the invitation and contributing meaningfully to the policy dialogue.
Invited Participants:
Sabnam Siwakoti (Joint Secretary, Ministry of Agriculture and Livestock Development)
Dr. Bhishma Kumar Bhushal (Joint Secretary, Office of the Prime Minister and Council of Ministers)
Dr. Ramnanda Tiwari (Director General, Department of Livestock Services)
Dr. Sulochana Shrestha (Deputy Director General, Department of Livestock Services)
Jagannath Tiwari (Deputy Director General, Department of Agriculture)
Hikmat Kumar Shrestha (Project Director, Prime Minister Agriculture Modernization Project)
Dr. Phanindra Raj Devkota (Member Secretary, National Farmers Commission)
Panchakaji Shrestha (President, National Farmers Group Federation)
Nisha Ghimire (Deputy Director, Nepal Insurance Authority)
Deepak Gyawali (Assistant Director, Nepal Insurance Authority)
Dr. Rudra Shrestha (General Manager, Nepal Agricultural Cooperative Central Federation Ltd.)
Deepa Devkota (Scientist S-2, National Agricultural Policy Research Centre, Nepal Agricultural Research Council)
Samaya Gaire (Scientist S-2, National Agricultural Policy Research Centre, Nepal Agricultural Research Council)
Ishwar Prasad Ghimire (Officer, Godawari Municipality, Lalitpur)
Dip Prakash Pandey (Chief Executive Officer, Shikhar Insurance Company Ltd.)
Udit Prasad Kafle (General Manager, Shikhar Insurance Company Ltd.)
Sejan Raj Marasini (Manager, Shikhar Insurance Company Ltd.)
Sarthak Raj Pandey (Deputy Manager, Shikhar Insurance Company Ltd.)
Manoj Shrestha (Deputy Chief Executive Officer, NLG Insurance Company Ltd.)
Umesh Dhakal (Officer, Salyan Insurance Company Ltd.)
Uddav Adhikari (Coordinator, Agriculture Campaign for Food)
Shivaram Neupane (Director, Fresh KTM)
Suman Ghimire (Chief Executive Officer, PlantSat)
Nimesh Dhakal (Managing Director, Nirjala Seeds and Agro Collection)
Dr. Devendra Gauchan (Agricultural Economist and Professor)
Lokraj Subedi (Senior Agricultural Economist, Independent Researcher)
Dr. Yugnath Ghimire (Independent Researcher)
Study Team:
Dr. Suroj Pokharel (Former Secretary, Government of Nepal)
Dr. Hari Sharma Neupane (Senior Research Fellow, Policy Research Institute)
Shiva Sundar Ghimire (Researcher)
Participants from Policy Research Institute:
Prof. Dr. Lekhnath Sharma (Executive Chairperson)
Laxman Prasad Bhattarai (Office Manager)
Dr. Deepak Kumar Khadka (Senior Research Fellow)
Dr. Mukti Ram Rijal (Senior Research Fellow)
Dr. Kalpana Khanal (Senior Research Fellow)
Dr. Mohan Kumar Sharma (Senior Research Fellow)
Ashok Pandey (Research Fellow)
Dr. Niranjan Devkota (Research Fellow)
Dr. Subash Adhikari (Research Fellow)
Dr. Pradeep Panthi (Research Fellow)
Dr. Manita Kusi (Associate Research Fellow)
Dr. Maheshwar Giri (Associate Research Fellow)
Dr. Prabhat Raj Dahal (Associate Research Fellow)
Gopal Acharya (Associate Research Fellow)
Dipendra Prasad Pant (Associate Research Fellow)
Rija Manandhar (Analyst)
Dr. Dezina Thapa (Analyst)
Pranjal Rijal (Analyst)
Soniya Bashyal (Analyst)
Bimal Chandra Sharma (Library Management Coordinator)
Gita Neupane (Senior Assistant)
Ayushka K.C. (Intern)
Ashish Bhandari (Intern)
Kumari Alika (Intern)
Dhiraj Bhatta (Intern)
Balihang Limbu (Intern)
Bijaya Koirala (Intern)
Snehi Rijal (Intern)
Satish Sapkota (Intern)