Page 45 - The Insurance Times August 2025

Climate Risk

Climate Risk and

Cambodia's Vegetable

Farmers: Revealing

Hidden Risks and Ali Tareque Parvez

External Collaborator -
Rethinking Resilience Social Finance Programme
Inclusive Insurance Asia

International Labour Organization

Cambodia's agricultural backbone is increasingly threatened by climate shocks, particularly droughts and
floods. According to the Cambodian Development Resource Institute, 62% of losses are flood-related
and 36% drought-related. These disruptions are worsened by limited water infrastructure-only 20.6% of
agricultural holdings have access to irrigation, despite 67% of land being cultivated.

Agriculture at the Heart of Cambodia's 2024, when a prolonged drought impacted several key prov-
inces, including Siem Reap, Kampong Thom-two of
Economy Cambodia's leading vegetable-growing regions.

Cambodia, with its population of approximately 17.4 million,
remains deeply reliant on agriculture for livelihoods and Vegetable Farming: Essential, But Ex-
economic growth. In 2024, the sector contributed 16.7% of
GDP, slightly down from 17.1% the previous year, while posed
employing around 3 million people (36-37% of the national Vegetables are particularly sensitive at all growth stages-
workforce). More than 60% of Cambodians live in rural ar- germination, flowering, and fruiting-suffering from issues
eas, with approximately 78% of rural households depend- like rot, wilting, and reduced yields during prolonged
ing on farming, forestry, or fishing. droughts or intense rains. In areas without irrigation (67%
of Cambodia's farmland lacks it), drought severely hinders
The Climate Challenge: Droughts on the vegetable production; if the dry season starts late, planting
must be delayed, further reducing seasonal yields (source).
Rise Natural disasters-especially droughts and floods-pose severe
Cambodia's agricultural backbone is increasingly threatened risks to Cambodia's vegetable sector, impacting yield, in-
by climate shocks, particularly droughts and floods. Accord- come, nutrition, and rural resilience. The lack of irrigation
ing to the Cambodian Development Resource Institute, 62% infrastructure and increasing climate variability further in-
of losses are flood-related and 36% drought-related. These tensify these challenges.
disruptions are worsened by limited water infrastructure-
only 20.6% of agricultural holdings have access to irrigation, Microinsurance: A First for Vegetable
despite 67% of land being cultivated.
Farmers
The effects of this vulnerability were starkly visible in early Chamroeun Microfinance Plc, with technical support from

40 August 2025 The Insurance Times