The weather-based crop insurance scheme (WBCIS) and the modified national agriculture insurance scheme (MNAIS) are the two components of the National Crop Insurance Scheme of the Central government. Both these schemes are being extended to farmers in the states of Kerala & Assam for the ongoing crop season. Crops like paddy, cashew, plantain, sugarcane, tapioca & mango, are covered under the scheme in Kerala. Whereas in Assam, the crops insured are both agricultural and horticultural crops like turmeric, paddy, jute, black & green grams, sali, ginger, ladyfinger etc. grown between the months of June and September.
In Kerala, details of the scheme for crops at district level have been spelled out by the State Level Coordination Committee on crop Insurances. Agricultural Insurance Company of India Ltd., a central government undertaking, will be the implementing authority. All farmers who have taken agriculture loans from banks and approved financial institutions will be covered under the scheme. However, for other ryots, it is on voluntary basis. The scheme is a joint venture of the central and the state governments.
Weather-dependent
Certain parameters have been listed for the weather-based insurance which has collected data from about 130 weather stations across the state. Four or five panchayats come under each weather station, thus covering entire Kerala. While the WBCIS scheme is separated for crops under Kharif and Rabi seasons, it is applicable to some crops such as cashew in Kerala on an extended time period from December to May.
Yield: The deciding factor
In the MNAIS scheme, the yield of a given crop, as determined by the authorities, will be the deciding factor and all the farmers insured under the scheme will be compensated, if the yield is below the laid down limit. The second paddy crop is under the WBCIS scheme in all districts whereas MNAIS scheme is applicable in Alappuzha, Pathanamthitta, and Kottayam. Under the WBCIS scheme, Rs.10,000 will be the insured amount per acre and the insurance premium is Rs.200. For tapioca, covered under the MNAIS, the insurance amount per acre is Rs.97,309.
The scheme for cashew will be applicable in districts like Kozhikode, Malappuram, Palakkad, Kannur, Kasaragod, and other districts. As for sugarcane, districts covered are Palakkad & Idukki. The scheme is applicable in all the districts. In Assam, a total of 11,477.362 hectares of land involving 21,660 farmers have been covered under WBCIS in 27 districts for the Kharif season of 2014. The total amount collected under the scheme as premium for the season is about Rs 46.82 crore. Out of this, 50 per cent of this amount has been paid by the farmers, while the remaining 50 per cent has been contributed by the central and state governments, i.e. 25 per cent each.
As per the laid down policy of the central government, the premium amount is 12% and 10% of the total cost of cultivation for horticultural crops and agricultural crops respectively. The central and state governments are subsidizing the premium of the farmers by insuring their crops from the uncertainties of weather
Eight insurance companies have been involved in this scheme namely- the government-run Agricultural Insurance Company of India Ltd, , Reliance General Insurance Company, Cholamandalam GIC Ltd, Future General India Insurance Co Ltd, SBI General Insurance Co Ltd and Bajaj Allianz GIC Ltd. HDFC Ergo GIC,& ICICI Lombard General Insurance Company. For the Rabi crop this season, i.e. the 2014-15 season, the centre has finalized National Agriculture Insurance Scheme (NAIS) for major crops like, potato, sugar-cane, rape seeds, mustard seeds, paddy, and wheat.
