The Hindu : Karnataka News : Insurance policy for coffee growers

Online edition of India's National Newspaper
Thursday, Mar 24, 2005

Karnataka

Karnataka

Insurance policy for coffee growers

By Our Special Correspondent

The Chairperson of the Coffee Board, Lakshmi Venkatachalam, speaking to the Chairman and Managing Director of Agriculture Insurance Company of India Ltd., Suparas Bhandari, at the launch of an insurance policy for coffee growers, in Bangalore on Wedn esday. — Photo: V. Sreenivasa Murthy

BANGALORE, MARCH 23. The Chairperson of the Coffee Board, Lakshmi Venkatachalam, today handed over the first "rainfall and crop yield insurance policy," launched by Agriculture Insurance Company of India Ltd. (AIC). The documents were received by Suparna Sashidhara of Chikmagalur.

The rainfall insurance and the area crop yield insurances now launched should run for a two- or three- year period as a pilot project so that more coffee growers can take benefit, Ms. Venkatachalam suggested. The Coffee Board contributes data inputs related to average rainfall and crop yields on the basis of which the insurance scheme is developed, she said. "This is the first weather-based insurance made available to coffee growers and is very timely. There are rainfall variations even between different estates in the same area,'' she added.

Crop data studies

The Coffee Board will provide access to its demonstration plantations so that weather and crop data studies in different zones can be carried out, Ms. Venkatachalam said. The coffee industry is beginning to recover after four years of slump and is still dependent on exports. Growers, therefore, have to be globally competitive. The insurance premium, which is 2.5 per cent of the coverage, should encourage the growers, she added.

The AIC Chairman and Managing Director, Suparas Bhandari, said the premium is less than the acturial amount normally calculated for insurance and may be revised next year. "There will be no intermediaries, and our field staff will directly visit plantations to get them insured and for settling any claims. We plan to settle claims within one month, if possible'' he said. The target is to cover 10,000 growers this year in Hassan, Chikmagalur and Kodagu districts.

Payment

The insurance scheme covers anticipated crop losses due to lack of rainfall, and residual risks from actual yield losses. Payments to the insured growers can be made in November at the end of the monsoon, based on any deficiency in the rainfall index. Further payments based on shortfall in yield can be made in February/March when the estimated yield figures are available.

he sum assured is fixed at Rs. 25,000 a hectare for Robusta and Rs. 35,000 for Arabica.

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