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G. Srinivasan

The maximum sum insured per hectare for robusta and arabica varieties would be Rs 20,000 and Rs 30,000 respectively.

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New Delhi Jan 19 The Cabinet Committee on Economic Affairs (CCEA) will take a call in its meeting next week on a scheme of the Department of Commerce for putting in place weather (rainfall) insurance as a risk management instrument for coffee growers with plantations of a size up to 10 hectares in a bid to shore up the sliding fortunes of coffee growers.

Highly-placed Government sources told Business Line that a note for CCEA has been prepared on the proposed scheme, which has been drawn up in consultation with the Coffee Board, the Central Coffee Research Institute and growers of the target States.

Under the proposed scheme, which would accord an effective risk management tool to those coffee growers likely to be affected by adverse rainfall conditions, there would be categorisation of three coverage options or triggers. The maximum sum insured per hectare for robusta and arabica varieties would be Rs 20,000 and Rs 30,000 respectively.

Once the CCEA approves the scheme, the Coffee Board would implement it from February, at an annual expenditure of Rs 23 crore.

The premium would be shared on 50:50 basis by the growers and the Government, the sources said, adding that the 50 per cent subsidy on the premium amount would be subject to a ceiling of Rs 2,000 per hectare for robusta and Rs 2,500 for arabica.

The Coffee Board would be authorised to approve and implement any further modification in the scheme, in consultation with Agricultural Insurance Co Ltd (AICL), subject to the proviso that all such modifications would be in line with the basic remit of the scheme and within the available resources.

Along with the proposed scheme, the CCEA would vet a proposal seeking to incorporate modifications in the personal accident insurance (PAI) scheme, which would benefit both plantation growers and permanent workers engaged on such plantations in case of death and permanent disability.

The sources said the components of the modifications would include extension of the scheme to cover permanent plantation growers and enhancement of insurance cover from Rs 25,000 to Rs 1 lakh for both plantation growers and permanent workers. Besides, approval is also sought for implementation of the modified PAI by the Price Stabilisation Fund Trust (PSFT).

More Stories on : General Insurance | Coffee

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