Punjab to introduce weather insurance

Punjab may join Rajasthan, Bihar, and Chhattisgarh in implementing "weather-based insurance" (new scheme) under the National Agriculture Insurance Scheme (NAIS) for wheat.

Sources said the department concerned (and the chief minister) was happy with the scheme and the file had been sent for approval to Chief Minister Parkash Singh Badal.

But financial constraint is the main reason that is delaying the implementation of the scheme because it will put a burden of Rs 9.5 crore on the state exchequer.

The weather-based crop insurance scheme provides insurance against deficit and excess rainfall, frost, heat (temperature), relative humidity, etc. which are deemed to adversely impact the rabi crop during its cultivation period. The risk period can be from sowing to maturity.

According to the scheme, a part of the premium, about 1.5 per cent, will be paid by the insured cultivator and the balance will be borne by the central and the state governments equally. So, if the scheme gets the chief minister's nod, it will be implemented in six districts "" Ludhiana, Ferozpur, Amritsar, Kapurthala, Bathinda and Patiala "" which account for about 20 per cent of the wheat sown in the state. The area under wheat cultivation in these districts is about 700,000 hectares.

Sources said the chief minister showed keen interest in implementing the scheme during the meeting with Agriculture Insurance Company of India (AIC) officials. After going through the modalities, officials in the state government have sent the proposal to the chief minister for approval. As far as the implementation of the scheme is concerned, sources said due to financial constraints the state was taking time in implementing the scheme during the rabi season.

The scheme will provide security to the farmers through insurance products and other support services. The AIC is an exclusive organisation set up for implementing the National Agricultural Insurance Scheme (NAIS). The company devises and implements other insurance schemes relating to agriculture and allied activities.