October 26, 2010

Philippine Crop Insurance Corporation to pay US$3.74 million for crop indemnity

The Philippine Crop Insurance Corporation (PCIC) will be paying a total of PHP161.41 million (US$3.74 million) in indemnities to 17,200 farmers who insured their rice and corn crops this cropping season against Typhoon "Juan".

PCIC president Jovy Bernabe said the amount will go mainly to rice and corn farmers in Central Luzon (Region 3) whose crops were damaged by the super typhoon.

The affected farmers in the region will receive a total indemnity of PHP86.729 million (US$2.01 million).

On the other hand, affected farmers in Cagayan Valley (Region 2) will receive a total of PHP45.714 million (US$1.06 million), while those in Region 1 will get PHP25.046 million (US$580,000).

Bernabe said PCIC will start distributing indemnity checks to affected farmers within 15-20 days. This will enable them to recoup their losses, buy seeds and inputs, and replant again.

Meanwhile, the PCIC chief said he is supporting the proposal of Senator Ralph Recto to require compulsory crop insurance coverage to agrarian reform beneficiaries.

Bernabe said for the past two years, the PCIC was able to double the number of farmers covered by crop insurance despite the budgetary constraints it is experiencing.

Almost 60% of the premium for crop insurance is subsidised by PCIC to make the programme more affordable to farmers.

From PHP214 million (US$4.96 million) this year, the Department of Budget and Management (DBM) has slashed it to PHP113.771 million (US$2.64 million) in the proposed budget for 2011.