World Bank to insure poor farmers?

14 September 1999

World Bank to insure poor farmers?

THE World Bank has devised to plan to enable small-scale farmers and consumers in poor countries to insure themselves against fluctuations in commodity prices.

The plan involves the creation of an international “intermediary” which would increase access to commodity price risk insurance in developing countries.

This would mean offering price floor guarantees for producers and price ceiling guarantees for consumers.

It has been estimated that the subsidy for the insurance would cost between $80m and $350m a year.

The plan is due to be discussed during the annual meetings of the Bank and the International Monetary Fund in Washington later this month.

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