BEIJING—The Chinese government has announced a "comprehensive insurance policy" for natural rubber growers in the main producing provinces Hainan and Yunnan.
According to a Dec. 8 announcement by local authorities, the insurance policy is intended to "increase enthusiasm" for rubber tree planting and promote production of the commodity.
The move, according to China's government, will help increase the country's self-sufficiency rate, particularly in the production of latex used in tire production.
Under the scheme, local financial departments are mandated to "do their best" to allocate premium subsidies "in (a) full and timely manner," and gradually expand the scope of the NR insurance.
The insurance subject matter is rubber seedlings or mature rubber trees or trees that are planted for more than six months in either of the provinces.
The policy will insure growers against "natural disasters, major diseases, pests and rodents, accidents, wildlife destruction and other risks faced by rubber seedlings or rubber trees."
In terms income-liability, the policy will cover "income losses caused by fluctuations in NR prices and output, based on the actual average rubber price."