Agriculture insurance for tsunami-hit farmers

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New Delhi, March 22: The National Agriculture Insurance Scheme (NAIS) is set to address the problems of tsunami-affected farmers of Tamil Nadu, Pondicherry and Andaman & Nicobar (A&N) Islands. Already a sum of Rs 15 lakh has been disbursed as compensation to 126 farmers in A&N Islands where crops were insured in the last season.

The Agriculture Insurance Company of India Ltd (AIC) which operates the insurance scheme is busy assessing the damages done to insured crops in Nagapatnam, Thiruvallur and Cudallore districts in Tamil Nadu and Konkal in Pondicherry. About Rs 10-15 crore is likely to be paid as compensation for damages done to insured crops in Tamil Nadu and Pondicherry.

According to AIC, no significant damages have been done to insured crops in Andhra Pradesh and Kerala on account of tsunami.

AIC is confident to cover 180 lakh farmers in 2004-05. Rajasthan, Haryana and Jammu & Kashmir accepted the NAIS in 2004-05. In 2003-04, 120 lakh farmers were under the insurance cover and 44 lakh farmers were paid compensation of Rs 19,000 crore.

Till 2003-04, the NAIS, since its inception has covered 46.21 million farmers growing food crops, oilseeds and annual commercial crops across 74.27 million hectare in 23 states and two Union territories with a sum insured of Rs 40,298 crore, earning a premium of Rs 1,243 crore. NAIS covers more than 30 crops in kharif (summer) season and over 20 crops in rabi (winter) season.

At the launch of the new crop-specific insurance - Coffee Rainfall Index and Area Yield (CRIAY) Insurance in Capital on Tuesday, AIC chairman and managing director Supras Bhandari said, “This is an unique product covering 75% of rainfall risk and 25% of yield risk. This will be available to coffee growers in Hassan, Chikmagalore and Kodagu districts in Karnataka from 2005. The sum insured is fixed at Rs 25,000 crore per hectare for Robusta and Rs 35,000 crore per hectare for Arabica. Premium rates are flexible and starts from a low of 2.5% of the sum insured.”

The payment of compensation based on rainfall deficiency will be made in November. Further payment based on yield shortfall will be made in February-March, he said.

Union minister of state for statistics and programme implementation Oscar Fernandes, who inaugurated the launch of CRIAY, urged AIC to set up a small cell to see that water reaches the coffee growers.