Farmers can now shelter their crop

CHANDIGARH: The changing weather pattern foxes all. Punjab and Haryana earlier experienced drought-like situation followed by unprecedented rainfall, damaging crops in its wake. But now, not only the big farmers, but even small landholders in the region can buy weather insurance, a policy that protects them against extreme changes in weather patterns.
Following the successful comprehensive weather insurance offer to cover farmers growing oranges in Rajasthan, ICICI Lombard, a leading private sector general insurance company, will be launching a weather insurance structure for wheat in the region soon.
Says Sanjay Gupta, area manager of ICICI Lombard General Insurance, "Crop insurance is yet to develop to its potential as it accounts for less than two per cent of income generated from agriculture in a year." The company, with support from the World Bank and International Finance Corporation, offers several portfolios under weather insurance.
In fact, from June, the Haryana government rolled out the crop insurance scheme to protect all crops except wheat and rice on a sustainable basis during the kharif season. Haryana took the plunge after the scheme having been implemented in 20 states and 2 Union territories.
Termed as the National Agriculture Insurance Scheme (NAIS), the scheme aimed at providing a greater coverage of farmers, crop and risk commitment. In the wake of crop failure, natural calamities, pests and diseases, the insurance will provide coverage to crops and financial support to the farmers. The Punjab government however rejected the proposal to implement the scheme.
Gupta remarks that as the crop insurance failed to meet the settlement needs of the farmers, the company had offered wider coverage for deviations in weather index and compensation for economic losses due to less or excess rainfall. It proposes to tie up with the states shortly, Gupta added.
Despite a large part of it being undertaken during the kharif season, which is critically monsoon-dependent, the company will start with insurance for rabi wheat during February and March.
The scheme is offered at three levels of indemnity that ranges between 60 and 90 per cent corresponding to low risk, medium risk and high risk. It is available for all crops based on the coefficient of variation in yield for the past 10 years.
Gupta says the scheme will cover agriculture and horticulture. Unlike crop insurance, which looked at individual farmers, Gupta says the company is aiming at district-wise and crop-wise schemes instead, as otherwise it will not be cost-effective.