January 14, 2010

India introduces weather-based crop insurance to grain farmers

The Agricultural Insurance Company of India will implement a weather-based crop insurance scheme on a pilot basis for the current rabi season in five districts of Tamil Nadu.

According to C. Anbarasan, Regional Manager- Agricultural Insurance Company of India, the scheme would be implemented in Ariyalur, Perambalur, Salem, Dharmapuri, and Virudhunagar districts for the 2009-10 Rabi season.

Under the scheme, farmers would be compensated for losses in the yield triggered by adverse weather conditions such as excess/shortfall in rain, temperature, frost, humidity and other scientific parameters.

"The parameters were based on a scientific study conducted in association with the Tamil Nadu Agricultural University," Mr. Anbarasan said.

While the coverage under the scheme would be mandatory for farmers taking crop loans from banks, those farmers without loans could join the scheme by paying the premium along with the application form through banks where they hold savings bank accounts.

Otherwise, they could also pay the premium by way of Demand Drafts through the agricultural insurance company agents in the districts

Under the scheme, farmers were required to pay only 20%of the premium for all crops except fruit/horticulture and the remaining 80%of the premium would be contributed equally by the State and Central governments.

For horticulture crops, farmers would be required to pay 50%of the premium while the rest would be contributed by the state and central governments.