The Hindu Business Line : Insurance claims on rabi crops in Bengal to touch Rs 380 cr

The outbreak of both early and late blight diseases of potato during the season, coupled with a hailstorm in February, caused considerable drop in agricultural production in the State.

Manish Basu

Kolkata, Oct. 16

The insurance claims under the National Agricultural Insurance Scheme (NAIS) from West Bengal for the rabi season of 2008-09 are likely to reach an all-time high of Rs 380 crore. The previous highest claim of Rs 219 crore was recorded in the rabi season of 2006-07.

The claim during the rabi season of 2007-08 was only Rs 9 crore.

The outbreak of both early and late blight diseases of potato during the season, coupled with a hailstorm in February, caused considerable drop in agricultural production in the State during the period. The devastating cyclone Aila that had hit the coastal regions of the State in late May also had a limited impact on the rabi crop, as the rabi season is from October to March in the State.

“The Centre’s approval of the claim is awaited and the claim settlement process will start in 30 days from now,” a source in the insurance industry told Business Line. The Union Agricultural ministry will evaluate the yield situation with the State Government before finalising the claim amount, he said.

Agriculture Insurance Company (AIC), a public sector undertaking, (earlier a part of General Insurance Corporation of India) is in charge of implementing NAIS.

Under the scheme, farmers taking crop loans from banks get a compulsory insurance cover for a drop in yield owing to any unforeseen disaster. The claims are also disbursed through the banks.

Claims on Potato

Out of the estimated Rs 380 crore claim for the period, nearly Rs 340 crore will be recorded on account of low yield of potato, the sources said. The yield of potato was only 58 per cent of the yield during the pervious season. The State recorded a bumper production of about 10 million tonnes of potato last year. The other crops affected during the season were Boro paddy, wheat, mustard, oil seeds and pulses.

The total contribution by the State Government in the crop insurance scheme during the period was Rs 170 crore, of which Rs 35 crore was the premium subsidy contribution. The total premium collected (including contribution from the farmer, State and Union Government) during the season was Rs 76.46 crore.

The drought-hit kharif season was, however, expected to generate lesser claims in the State, as it had received adequate rainfall as compared with other regions, the sources said. The yield survey taken up by the State Government (called the crop cutting experiment) for the kharif season will begin at the end of this month and the claim settlement process may start by May, 2010, the sources said.

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