Crop Insurance

In India crop insurance was considered by the central government as early in 1947-48. tte Indian government constituted an expert committee headed by Professor Dharam Narain, the Chairman, Agricultural Price Commission in 1970. A beginning in crop insurance was finally made in 1972 by implementing an experimental scheme for Hybrid-4 cotton in few districts of Gujarat State, tte scheme

Table6.6 MajorRainstormsinlndia




Casualty & Damage


01-03 July 1930


Damage to agriculture andpropertywas extensive.


01-03 Oct. 1961


Damage to agriculture and property was extensive.


28-30 Aug. 1982


Severe flooding to Mahanadi. Considerable damage to crops, property and loss of lives reported.


luly to Aug.lst weekl988

i) Andhra Pradesh

Paddy crop in 300,000 ha hectares completely damaged.

Aug.3rdweekto Sept.1988

ii) Assam

Standing Ahu and Sali paddy crops in 25,000 ha damaged.


Iunelst & 2nd week 1994 and 14-16 luly 1994


Crop worth Rs. 1.445 billions damaged.


26-28 Aug. 2000

Andhra Pradesh, Hyderabad

Paddy, chilly crop worth hundreds of crores damaged.

was based on the individual approach and a uniform guaranteed yield was offered to selected farmers and the same was continued till 1979. Based on the recommendation of Prof. V.M Dandekar of GIC, another pilot scheme on area insurance was introduced in 1979. Participation in the scheme was voluntary but was open only to farmers who had received short term crop loans from financial institutions, tte pilot crop insurance scheme was replaced by a Comprehensive Crop Insurance Scheme (CCIS) which was introduced from April, 1985 by the Government of India with the active participation of the State Government. A new crop insurance scheme entitled National Agricultural Insurance Scheme (NAIS) was introduced in the country starting from the Rabi (post rainy) season of 1999-2000. tte NAIS modifies the CCIS in some crucial aspects. First, it provides for greater coverage for farmers as non-borrowing farmers are allowed to purchase insurance. Second, it provides greater coverage in terms of crops as well, tte NAIS, at present, is implemented by 19 States and 2 union territories.

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