After the immense distress caused by unseasonal rains and hailstorms, farmers in Himachal Pradesh finally have something to be positive about. On May 14, the Department of Agriculture announced that the centrally sponsored Crop Insurance Scheme for ginger, pea and tomato will be extended to more districts in the state soon.
Presently, the scheme covering ginger crops only in the Sirmaur district would now be extended to Solan, Shimla and Bilaspur as well. Similarly, crop insurance for peas would cover six more districts of Chamba, Kullu, Lahaul & Spiti, Kinnaur, Mandi and Shimla; while insurance for tomato, which currently encompasses Solan and Bilaspur, would soon benefit the farmers in Kangra, Mandi, Kullu, Shimla and Sirmaur districts.
What are the new provisions?
- The government, currently implementing the scheme with the support of Agriculture Insurance Company of India (AICI), ICICI Lombard and HDFC has enrolled four more prominent names – Reliance, Bajaj Alliance, Chola Manglam and TATA AIG.
- Insurance claim which was earlier calculated on the basis of yield and production would now be directly measured as per the weather considerations and forecasts of the Meteorological Department.
- Premium rates have been marginally brought down from 12% for all crops to 11% for ginger and pea and 10.5% for tomato.
- The scheme has been subsidized and the farmers will have to pay only 50% of the premium, while the rest will be shared equally between the state and the Central government.
- Furthermore, under the Mukhyamantri Kisan Evam Khetihar Mazdoor Jeevan Suraksha Yojana farmers and agricultural laborers will be entitled to an insurance cover in the event of injury or death while working with the farm machinery or implements.
- In case of death or permanent disability, the farmer’s family would be given a compensation of Rs. 1.50 lakh, while in the event of partial disability, compensation up to Rs. 50,000 would be paid based on the percentage of disability.
Who are the beneficiaries?
The scheme compulsorily covers all the Loanee Farmers – referring to all those who grow notified crops and are availing the Seasonal Agricultural Operations (SAO) loans from financial institutions. Whereas, it is optional for non-Loanee farmers, growing notified crops, to avail the scheme or not.
The newly introduced provisions have largely tried to address the issues concerning the implementation of the Crop Insurance Scheme, such as, calculating the claims, insurance premiums and settlement of claims. With proper execution, the scheme would not only help stabilize farm incomes during the disaster years but also encourage farmers to adopt progressive agrarian practices for better yields in the future.
Overall, these announcements can be seen as a significant move from the government to relieve farmers in the state, particularly during times such as these, when forces of nature act in an unfavorable manner. For now there is every reason to be optimistic but whether or not these benefits reach the grass root level will determine the effectiveness of this revised Crop Insurance Scheme.
B2B Marketplace - Guide & Research Centre 