Growers skeptical about weather insurance scheme

Despite the increasingly erratic weather over recent years, which has caused substantial damage to fruit crops, fruit growers, especially apple growers, have shown little interest in the weather-based crop insurance scheme designed to secure their produce. Of the estimated 2.5 lakh fruit growers in the state, only around 66,000 opted for the scheme in the last financial year. “It’s surprising that not enough growers are opting for the scheme. They should opt for it,” says Revenue and Horticulture Minister Jagat Singh Negi.

An official associated with one of the three companies managing the scheme in the state attributes the lukewarm response to a lack of awareness among growers. “The response will improve as growers become more aware of the benefits,” the official said. However, the growers argue that the scheme has several loopholes and offers minimal benefit, which is why many of them are not insuring their produce.

The primary issue the growers have with the scheme is the method of damage assessment and fixation of claims. “The insurance companies collect weather data from a weather station for a specific area. For example, if drought-like conditions have been recorded over an area of about 50km, the company will set a generalised claim for the entire region,” said Lokinder Bisht, president of the Progressive Growers Association. “On the ground, the impact of the weather event varies within the area. Some growers may face only minor losses, while others may suffer significant damage. The generalised claim often does not adequately reflect the actual losses. The true extent of damage can only be assessed through field visits, but the companies rely solely on automated data,” Bisht added.

Another issue the growers raise is the inadequate weather stations and instruments to accurately record weather events that affect crop production, such as temperature fluctuations, rainfall variations, high-velocity winds and drought conditions. “The growers do not have confidence in the accuracy of the data gathered, especially when there aren’t enough weather stations and observatories to collect it,” said Harish Chauhan, president of the Fruit, Vegetable and Flower Growers Association.

According to a horticulture official, the weather forecasting system is being ramped up to the panchayat level to provide daily updates on temperatures, rainfall, wind speed and other factors under the Centre’s Weather Information Network and Data System scheme. “We have already floated tenders to set up these systems at the panchayat level. Once operational, the concerns regarding the veracity of the data will be addressed,” the official said.

The growers also point out that the scheme caters to only quantity loss, not the loss in quality. “When apples are damaged by hailstones, their premium quality is lost, and they are sold as B-grade fruit. This results in a significant loss of quality and a reduction in price. However, insurance companies do not take quality loss into account when determining claims,” said Dimple Panjta, president of the Himalayan Society for Horticulture and Agriculture Development.

According to Chauhan, the general perception among growers is that the scheme is more beneficial to the companies than the growers. “The claims that growers typically receive are almost equivalent to the premiums they paid. There would be few growers who got a substantial claim for their losses. In Uttarakhand, however, horticulturists can receive claims of up to Rs 3 to 4 lakh under the same scheme,” he claimed.

The Horticulture official, however, said that claims are disbursed as per the fixed parameters and some growers in Kinnaur have received claims upto Rs 4 lakh.

Mohan Sharma, who runs an NGO, believes that a more transparent system would encourage more growers to participate. “In 2014-15, information obtained through RTI revealed that around Rs 1.62 crore were deducted for the scheme in one cluster, but the total claims disbursed were just over Rs 20 lakh. When I sought this information again for the next few years, it was denied,” he alleged.

Himachal Tribune