Only 5 percent Farmers know about crop insurance scheme
By Amit Dwivedi
March 30, 2010
The Author is health and development journalist. He can be contacted at: email@example.com
Even after seven years of launching the programme, there is no awareness
about this scheme even in different stakeholders, forget about the farmers.
A study done by Gorakhpur Environmental Action Group in Uttar Pradesh
revealed that only 5% farmers know about crop insurance scheme whereas 95%
of them had never heard about it. But they were eager to know about it.
The study further revealed that ‘more than 70% of farmers have Kisan Credit
Cards and hence they are covered under crop insurance by default. Government
orders do not reach the departments in time due to improper communication.
Most of the farmers were eager to get involved in such schemes but had no
resource to get information.
The Agriculture Insurance Company of India (AIC) had launched a new crop
insurance programme in India, including Uttar Pradesh in 2000. Several
government institutions were given responsibilities to execute the programme
with specific and defined roles in which AIC was identified as the main
“Though the government of India has made state and district level monitoring
committees for the proper implementation of crop insurance, these committees
are not working properly. Commercial Banks are not performing their assigned
roles because of which the entire process of crop insurance is suffering.
Banks do not collect, compile and submit the premium amount to lead banks on
scheduled time which causes delay in compiling the list of insured farmers.
Monthly co-ordination meetings of government departments are not being held
properly which is mandatory at district level. Co-operative banks are
performing well in comparison with Regional Rural Banks (RRBs) and
commercial banks. Inter-department co-ordination is very poor. This
insurance scheme is a multi department approach which needs a strong
co-ordination amongst various departments. They need to complement each
other's work and if there is no co-ordination between them then the entire
process gets hampered," said Dr. Shiraz A Wajih, President, Gorakhpur
Environmental Action Group.
Mutual efforts of NGOs and government departments are required to improve
the reach of the crop insurance scheme. They should try to advocate this
scheme so that the state government can take up the issue in the mainstream
of development works. Banks are not active enough to collect and compile the
insurance premium which causes delay in insurance premium submission.
Generally, compensation process takes more than one and half years which is
too long a wait period for the farmers and it defeats the very purpose of
the scheme. The involvement of several departments makes the process of
timely compilation of premium and disbursement of losses very complex.'
Proper knowledge and implementation of Crop insurance scheme can increase
the food-grain production in India and can reduce the risk of crops losses.
This will instill a sense of security in the farmers.
Posted on: March 30, 2010 08:08 PM IST