Small, marginal farmers may get special cover
Small and marginal farmers with up to five acres holding in Karnataka may get their entire crops covered under crop insurance during the crop season of 2012-13 (kharif, rabi and summer). If everything goes well, nearly 5.5 million farmers in the state would get the benefit of crop insurance without having to pay a single rupee as premium.
In an effort to protect farmers from the vagaries of nature, the department of agriculture is working out a new insurance scheme for all small and marginal farmers in the state, starting with the kharif season of 2012. This scheme, if implemented, may cost Rs 550 crore to the government, according to sources in the state agriculture department.
“Presently, the weather-based crop insurance cover is optional for farmers and not many come forward to avail the scheme. So, the government is thinking of extending the scheme to all small and marginal farmers free of cost. This will help them in the event of drought, floods and other calamities,” official sources told Business Standard.
The proposal is presently getting the final touches and would go to agriculture minister Umesh Katti soon for his approval. Once he approves, it would go to the cabinet and the scheme will be announced in the forthcoming budget, sources said.
According to the proposal, the state government would pay the entire premium amount for all 5.5 million farmers.
The purpose of this scheme is to protect the small and marginal farmers who cannot afford to pay premiums and quite often lose their crop and investment during adverse weather conditions, such as deficient and excessive rainfall, frost, drought and relative humidity, the sources said.
There are about 7.5 million farmers in the state. Presently, about 15 per cent of the farmers, mostly large, seek insurance cover for their crops. For instance, in 2009-10, only 1.1 million farmers participated in the programme by paying Rs 41.82 crore as premium. For the kharif of 2010, only 690,000 farmers registered for crop insurance. Figures for the present year are yet to be compiled, officials in Agriculture Insurance Company of India Limited said.
As of now, the weather-based insurance scheme is offered for 19 crops in the kharif season and nine crops in the Rabi season starting 2010-11.
Under the National Agriculture Insurance Scheme (NAIS), during 2010-11, 25 crops under kharif, 19 crops under Rabi and five crops under summer seasons were notified at hobli level. Farmers have been paying premiums in the range of 1 per cent to 3.5 per cent of the total sum assured. The premium varies depending on the crop. For cereals the premium is charged at 2 per cent and 1 per cent for pulses and oilseeds.
The agriculture insurance schemes are implemented through Agricultural Insurance Company of India Ltd (AIC), ICICI Lombard General Insurance Company, HDFC Ergo General Insurance Company, and Cholamandalam M S General Insurance Company.