The Mozambican Agriculture Ministry in December of last year launched a pilot agricultural insurance programme for cotton producers and companies that promote the crop in two districts of Nampula province, said a ministry official.

Osvaldo Catine, head of the Department for Studies and Projects of the Agriculture Ministry, said that the insurance was part of the Strategic Plan for Development of the Agricultural Sector and is intended to protect rural workers and increase investments in this area.

Initially the insurance will cover a single agricultural campaign and burning practices that destroy plantations.

Cited by the Mozambican press, Catine also said that producers in the districts of Monapo and Lalaua and respective companies may be paid up to a maximum of US$700,000 or around 10 million meticals per district.

Catine also said that cotton producers that have lost all or part of their crop due to recent rains and floods would receive compensation of up to 3,000 meticals per hectare.