Endowment fund to be converted to insurance premium

Government working on to support the people with insurance premium instead of endowment fund

The government is currently working on to transform the endowment fund to insurance premium as soon as the government gets the budget.

This was said by Agriculture Minister Yeshey Penjor during question and answer session of the eighth sitting of the 8th session of the 3rd parliament on November 18, 2022, responding to question on when the government will transform the endowment fund to insurance premium. The question was quizzed by the Member of Parliament (MP), Passang Dorji (Phd) of Bartsham-Shongphu.    

Similarly, MP Drungtsho Karma Wangchuk of Chhumig-Ura constituency asked the Agriculture Minister Yeshey Penjor to share to the House how the government will use the endowment fund to secure crops and livestock for the people.      

Responding to the question the Agriculture Minister said, “The endowment fund of Nu 0.3mn is allocated in the gewog to secure crops and livestock of the people. However, the fund has been diverted on other gewog development activities.” 

The Minister added that the government need about Nu 1.7bn and that currently the government is seeking fund support from the donors. 

However, the Agriculture Minister shared that having insurance premium scheme is more recommendable than the endowment fund. “Experts recommend having insurance premium instead of endowment fund and the government is working on this,” he said.  

The Minister said that from the climate change adaptation fund board, USD 4.9mn was approved by the World Bank after the submission of a report. “In the report we have included the human wild life conflict project to support the people in the country who have been affected.”

The World Bank has asked the ministry to submit the income data of the people and the ministry is working with the Department of Revenue and Customs (DRC).        Meanwhile, MP of Sombaykha Constituency, Dorjee Wangmo asked the Agriculture Minister if there are any plans to set up a milk packing unit for the benefit of the people in order to improve the country’s economy and promote agricultural and livestock products.

The Minister responded that the Ministry will support such project as it is very important for the people but have to propose through gewogs and then discuss it at the Dzongkhag level. “Otherwise, the ministry cannot directly support the proposals.”

The Minister informed that there are about 80 milk processing units throughout the country and there are about 191 farmer’s cooperatives and 18 youth dairy cooperatives.

Sherab Dorji from Thimphu