Parliament approves motion to establish crop and livestock compensation trust fund

The MP from Kilkhorthang-Mendrelgang constituency, Kamal Bahadur Gurung, introduced a motion in the House to create a Crop and Livestock Compensation Trust Fund. He emphasized the vital role of agriculture, which contributes 14.5 % to Bhutan’s GDP, employs 43.56 % of the labor force and sustains the livelihoods of over 60% of the rural population.

He said that there is an increasing vulnerability of farming communities to climate change. He noted that extreme weather events caused by climate change, such as flash floods, windstorms, hailstorms, and droughts, are causing significant losses in crops and livestock.

He said, “Currently, there is no compensation scheme such as crop and livestock insurance policies or compensation trust funds to assist affected communities during these crises, often forcing farmers to seek alternative sources of income.”

The proposed trust fund aims to provide compensation during natural disasters and damages caused by wild animals, with or without insurance. He said that establishing such a fund is crucial to maintain the attractiveness and viability of farming, thereby preventing rural-urban migration and ensuring food and nutrition security.

Several members expressed strong support for the motion. However, the Minister of Agriculture and Livestock mentioned that the government is already working on an insurance scheme to be presented to the Parliament, with substantial funds allocated to the agriculture and livestock sectors in the 13th Five-Year Plan (FYP).

The Minister acknowledged the necessity of supporting farmers, but raised concerns about the budgetary implications, noting that the proposed costs exceed current allocations.

Likewise Finance Minister Lekey Dorji highlighted the country’s significant fiscal deficit and public debt, emphasizing the need for prudent financial management.

Despite these economic challenges, proponents of the motion stressed the urgency of supporting farming communities and youth reliant on agriculture. They also suggested including highland livestock in the compensation categories and adjusting the funding ratio to lessen the financial burden on the public.

The motion was adopted and the House directed the Ministry of Agriculture and Livestock to submit an implementation report in the next session.  

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