Though small scale farming is dominant in the country, it usually results in a big loss since it is highly vulnerable to extreme weather condition, pests and diseases.
Drought is a recurrent phenomenon and when farmers face extreme weather conditions, they have no capacity to withstand the problem. Traditionally, farmers have their own associations to support each other when they face social problems. In the modern time, establishing farmers' associations has been recognized by the government. And these association have been flourishing from time to time. The associations could supply agricultural inputs to the farmers at fair price and also supply farmers products for the advantages of farmers and consumers.
However, when extreme weather condition occurs because of the non-availability of insurance service, they face challenges beyond their capacity to manage. Recently, in order to protect farmers from environmental danger, six pertinent stakeholders agreed to provide insurance services to small scale farmers.