Chapter One

Crop Insurance
A Safety Net in Agriculture

1.1. Introduction
Agriculture which is an important sector of economy is considered widely as an industry. It faces
various types of natural hazards. Insurance is an important instrument to give protections under
risky activities and that plays significant role in the agricultural production decision, chemical
use decision, cultivation practices and cropping pattern decisions. In the advance market
economy public agencies introduced all risk crop insurance policies to give protection to the
agriculture sector. But in the less developed or developing country such mechanism does not
exist because the farmers have the lowest risk bearing capacity. Though in the developing
country the sharecropping is an important policy to give them safeguard from risk activity but it
only gives protection to landless or partially landless peasants. It fails to give protection to small
and medium-sized farmers from risk. Agricultural insurance is a more efficient instrument and an
effective institutionalized mechanism for dealing with the problem. Agricultural insurance
considerably strengthens the financial security of farmers and reduces the direct and indirect
costs on the national economy. In India crop insurance is compulsory for the loanee farmers who
borrow loan from banks and other financial institutions.

The crop insurance is a potentially more effective risk-shifting mechanism to give protections to
all types of farmers and the use of it as a risk management tool has grown rapidly in recent years.
Also the crop insurance subsidies help the farmer on various grounds. They give protection from
different natural calamities. They encourage the planted acres and also encourage the producer to
use large amounts of chemical fertilizers, pesticides and herbicides. The crop insurance subsidies
1

create important problem, which increases the probability and size of production loss (moral
hazard). Due to the presence of moral hazard problem the insured farmers reduce input use and
average yields. Again many environmentalists argue that if agricultural chemical input use
increases, it becomes harmful to animal and human wealth.
Theoretically, the analyst, Quggin (1993) suggests that moral hazard problem incentives to
increase the use of inputs that raises the expected yields as well as the variance of yields. But the
other two analysts (Horowitz and Lichtenberg -2004) suggest that the farmer who purchases crop
insurance use more chemical inputs than the farmers who do not purchase crop insurance.

The organization of this chapter is as follows. In the section 1.2 the definitions of crop insurance
and related issues in crop insurance have been discussed. We have presented the brief history
about Indian crop insurance system in section 1.3. In section 1.4 we would explain the brief
history about West Bengal crop insurance system. Section 1.5 deals with the need of study. The
objective of this study has been considered in section 1.6. We have discussed the socio economic
profile of the Hooghly district in section1.7. Section 1.8 concludes this chapter.

1.2. Definition of Insurance and Crop Insurance

By which contract a person or institution promises to other person or institute to repay the
compensation of an accident or damage instead of fixed amount of money is called insurance.
Insurance means a thing providing protection against a possible event or insurance means money
paid to insure against something or by an insurance company in the event of damage, injury, etc.
So insurance is compensation against an agreement. In the insurance agreement the person who
insures for getting back the compensation is called insured, and the person who promises to
repay the compensation is called insurer. The agreement between the insurer and insured is
known as an insurance policy. The insured agrees with the insurer to pay the fixed amount of
money regularly termed as premium.

Crop insurance is an important measure/instrument used by farmers for mitigating the financial
losses due to various types of natural calamities/risks which damage and destruct the production.
2

It is also one of the important instruments that can be used by a farmer to stabilize his income
against partial or complete crop failure due to adverse weather [such as disasters, flood, hail,
drought etc.] or due to related adverse physical crop conditions which are beyond his control.

Why is it Called Crop Insurance not Crop Loan Insurance?

Before the introduction of crop insurance farmers took crop loan from the different financial
institutions, that is, from different formal credit institutions such co-operative credit institutions,
regional rural banks and commercial banks. So they became loanee farmers. There were no crop
insurance facilities. In that case if the crops were damaged by natural calamities, there was no
chance of getting or receiving indemnity from the insurer. After crop damage they were bounded
in debt trap.

After the introduction of crop insurance scheme (the Comprehensive Crop Insurance Scheme
(CCIS) was introduced in Indian agriculture from 1st April 1985 over all India and the National
Agricultural Insurance Scheme (NAIS) or Rashtriya Krishi Bima Yojana (RKBJ) has been
running well for the session 2000-2001 with the active assistance and agreement of the West
Bengal Government (W.B Govt.) in the state of West Bengal) all the loanee farmers are
compulsorily insured and get the benefits of crop insurance after crop damages due to natural
calamities. The National Agricultural Insurance Scheme (NAIS) pays the indemnity to the
affected farmers by its own indemnity paid rule.

Various types of crop insurance schemes have been introduced in the field of Indian agriculture
such as Compressive Crop Insurance Scheme (CCIS), National Agricultural Insurance Scheme
(NAIS) or Rashtriya Krishi Bima Yojana (RKBJ), Seed Crop Insurance Scheme (SCIS), Firm
Income Insurance Scheme (FIIS), Rainfall Insurance Scheme (RIS) and Weather Based Crop
Insurance Scheme (WBCIS).The crop insurance schemes are operated on area approach,
individual approach and pilot basis according to the types of crops. Among the above stated crop
insurance schemes, the Compressive Crop Insurance Scheme (CCIS) and the National
Agricultural Insurance Scheme (NAIS) are operated on the basis of area approach and the NAIS
also operates on individual approach for localized calamities, and the reaming crop insurance
3

schemes are followed on pilot basis. In case of area approach crop insurance scheme, unit of area
may be District, Subdivision, Block and Gram Panchyat. In India, at the beginning of the crop
insurance scheme no specific area is chosen as unit. Consequently various problems were found.
Later on district was chosen as a unit of area, then extended to subdivision, Block and finally it
tries to manage its extension to the Gram Panchyat level. Similarly in West Bengal, district is
chosen first as unit area, then sub division, after subdivision block is chosen as unit area and
today Gram Panchyat is selected as unit area.

1.2.1. Objectives of Crop Insurance Scheme

The objectives of crop insurance scheme are:
To protect the farmers against the loss of their crops [declared affected crops] due to
natural disasters such as hail, drought and flood etc. or the loss of revenue due to decline
in the prices of agricultural commodities.
To encourage the farmers to use progressive agricultural strategies, high yielding seeds
and fertilizers, and to use advance technology in the agriculture.
To stabilize the income of the farmers in the years of natural calamities

1.2.2. Features of Crop Insurance

1.2.2A. Included Crops
The following crops are included under the scheme:
Rabi Crops:
Boro rice, Wheat, etc.
Pluses: Musur, Arhar, Mung,Gram,and Maskalai, etc.
Oil Seeds: Mustard, Linseed and Til, etc.
Potato.
Kharif Crops:
Aman Rice, and
Aus Rice.

1.2.2B. Integrated Farmers

All farmers, including share croppers, tenancy farmers, who will produce notified crops in the
notified area, may be integrated under the crop insurance scheme. For such scheme the farmers
are included either on compulsorily basis or voluntary basis.
Compulsory basis: The farmers who will cultivate the notified crops and also collect loan
from financial institutions for seasonal agricultural purposes are called loanee farmers
and they are automatically compulsorily insured.
Voluntary basis: All other farmers-who do not collect crop loan but cultivate the notified
crops must have bank account. These farmers are called non-loanee farmers and
consequently belonging to voluntary basis. (Ref. National Agricultural Insurance
Scheme; Scheme and Guidelines, Page No. 25).

1.2.2C. Risks Covered and Exclusions

Natural Fire and Thunderbolt,
Strom, Hailstorm, Cyclone, Typhoon, Tempest,
Hurricane, Tornado,
Flood, Inundation, and Landslide,
Draught, Dry spells,
Insects, pests/Diseases etc.
But the losses due to war, nuclear risk, malicious damage and other preventable risk shall not be
included.

1.2.2D. Premium Subsidy

Small and Marginal farmers will get a percent of premium as a grant. The premium for Small
and Marginal farmers is subsidized to the extent of 10 percent which is shared by State
government and government of India.

1.2.2E. Indemnity and Custom (Method)

If the Actual Yield (AY) of notified crops of an area is less than the specified Threshold Yield
(TY), all the loanee farmers who are affected will get compensation for damages.
5

1.3. Brief History About Indian Crop Insurance System

Agriculture is a main stake of the Indian economy and this sector faces diverse types of uncertain
events such as natural calamities (drought, flood etc) and delay monsoon which are beyond the
control of the farmers. Due to the natural calamities the agricultural production, gross national
product and also the income of the farmers decrease. Though before independence both direct
and indirect subsidies have been offered in Indian agriculture but after independence at the time
of five years plan India has institutionalized both direct and indirect subsidies and they have also
been increased their scope and amount for the benefit of the farmers. The agricultural subsidies
are price supports, fertilizers subsidies, cheap credit, subsidies irrigation rates, reduce tariff on
electricity, reduce excise duties on diesel fuel, differential freight rates for agricultural outputs
and inputs, free extension services and incentives offered for agro-processing industries or export
of agriculture commodities (N.K. Rustagi: Crop Insurance in India, Page No.15). However, it has
been observed that these subsidies have not reached the targeted groups (small and marginal
farmers). Most of it generally goes to the large and influential farmers who are usually not
publicly stated targeted group. Though subsidizing the prices of agricultural inputs is one way of
supporting and stabilizing the income of farmers but this policy cannot reach to the target groups.
However, Government increases its attention towards the introduction of crop insurance.

To safe-guard the farmers from vagaries monsoon, since independence, the question of
introduction of crop insurance has been under the consideration of government. (After
independence,) according to the central legislation in 1947, the minister of food and agriculture,
Rajendra Prasad, gave an assurance that the government would examine the feasibility of
introduction of crop insurance in the Indian agricultural system. To study the problems and
formulate experimental crop insurance scheme in selected areas of the country, an Officer on
Special Duty was appointed in August 1948. In this respect, he circulated two pilot crop
insurance schemes to the states for implementation. Due to the shortage of sates funds, they did
not implement the schemes. Among the states, however, the Punjab government submits a
proposal to implement crop insurance as a part of the third five year plan (1961-66), requested
the central government for requisite financial support. In this respect the central legislature alone
6

was competent to enact necessary legislation and the government of India also decided in
October 1965 to have Crop Insurance Bill and a Model Scheme of Crop Insurance formulated so
that the state which wanted to introduce crop insurance in areas under their jurisdiction could do
so. But the states governments expressed their different views on this subject. So the government
of India, in March 1970 decided to examine the economic, administrative, financial and actuarial
implication of Bill and Scheme and then in July 1970 an Expert Committee on Crop Insurance
was appointed. This committee concluded that the running countrys conditions were not suitable
to introduce crop insurance scheme in the near future. Thus, the whole question of introducing
crop insurance in the country has been given an expert burial. But, Dandekar in his article (Crop
Insurance in India-1976) examined in details the arguments of expert committee and strongly
advocated the introduction of crop insurance in Indian agriculture.

Even though the need for crop insurance in India had been debated for a long time, it was not
introduced until 1973. The program was offered in the public sector to insure cotton in a district
in Gujarat and later extended to other states (Andhra Pradesh, Maharashtra, Karnataka, Tamil
Nadu and West Bengal) and to more crops (wheat, groundnuts, and potato). The program was
based on the individual approach and proved to be very expensive due to the problems of moral
hazards and adverse selection. The program was stopped in 1976 (Crop Insurance In India, An
analysis by Kustagi-1988). The present program based on the homogeneous area yield approach,
was started in 1979. Under this approach, if the area yield is less than the guaranteed yield, all
insured farmers in the area, irrespective of their actual yields, are compensated on equal basis. If
the area yield is more than the guaranteed yield, no indemnity is paid even if some farmers have
low yields.

In India, the General Insurance Corporation of India (GIC) managed crop insurance, and delivers
crop insurance through rural financial institution and the crop insurance tied with crop loan and
subsidy shared equally by the central and state governments. The GICI requested the Indian
School of Political Economy to prepare a report on the feasibility of introduction of crop
insurance in agriculture. The GICI introduced a Pilot Crop Insurance Scheme in 1979-80, in
association with the state governments, in 26 areas of Gujrat, 23 areas of West Bengal and 17
7

areas of Tamil Nadu and later the scheme has been extended to more areas of more states. The
scheme offered to all borrowing members but on a voluntary basis. It (Pilot Crop Insurance
Scheme) covered only about 60,000 (sixty thousand) farmers all over the country (India). Thus
the scheme is not yet fully integrated with agricultural credit. This scheme is loss making (Can
Crop Insurance Work? The case of India, Mosley and Krishnamurthy (1995)).

India predominantly belongs to an agricultural dependent economy; a large scale of crop failure
due to natural hazards could have an adverse effect on national output/production. Natural
hazards not only affect the production of agriculture in the year in which they occurs but also
week the productivity efficiency of the farmers, most of whom are small(one hector) and
marginal( one to two hector), in ensuing years/next years. Realizing the risky character of
farming, the comprehensive crop insurance scheme (CCIS) was introduced in Indian agriculture
from 1st April 1985 by the General Insurance Corporation of India (GIC) in collaboration with
state governments(as co-insurer in the ratio of 2:1).Initially the scheme covered major cerealswheat, paddy and millets and critical deficit crops-oil seeds and pulses.

The key objectives of scheme are as follows.

to provide a financial support to the farmers in the event of crop failure as a result of
natural calamity,
to restore the credit eligibility of farmers after a crop failure for the next crop season, and
to support and stimulate production of cereals, pulses and oilseeds.

The CCIS is based on area approach and voluntary in nature. All the farmers availing crop loan
from co-operative credit institutions, regional rural banks and commercial banks are eligible for
insurance coverage. The insurance premium rates are charged 2 percent of the sum insured in the
case of rice, wheat and millets and 1 percent in case of oilseeds and pulses (Economy Survey
1985-86). The Central Government and respective State Government have shared risk-premia
and claims in the ratio of 2:1and 50 percent of the premium payable by small (1hectare) and
marginal (1-2 hectares) farmer and the remaining 50 percent is subsidized equally (50:50) by the
Central and State Governments (Economy Survey of India 1989-90).
8

Initially twelve States and one Union Territories were covered under the scheme in Kharif 1985
and covered near about 39.5 lakh hectares of cultivated land and 22.6 lakh farmers, which is not
satisfactory (Economic Survey of India 1986-87). This occurred due to inadequate publicity or
lack of knowledge of crop insurance scheme. From the beginning the CCIS has been quite
popular and beneficial to the farmers. Under the crop insurance scheme coverage of area
continuously expanding from kharif 1985 to the end of kharif 1991 cumulatively 29.4 millions
farmers have been covered over an area of 51.9 million hectares and the total sum of insured was
Rs. 6591 crore (Economic Survey-1991-92).However due to drought and flood in1986-87 and
1987-88, claims shot up from Rs.84 crores in kharif 1985 to Rs. 277 crores in kharif 1987.But
due to good monsoon, the claims has come down to Rs.34 crores in kharif 1989 (Economic
Survey 1990-91). This is shown in the table-1.1. Following the quantum jump in claims and
heavy losses, the scheme was temporarily suspended in January, 1988. After some modifications
it was reintroduced in September 1988. However, the sum insured was reduced from 150 percent
to 100 percent of crop loans and limited to a maximum of Rs.10, 000 per farmer (Economic
Survey 1989-90).

The CCIS covered 467 lakh farmers on an area of 802 lakh hectares and the amount of suminsured is Rs.11846 crores from Kharif 1985 to the end of Rabi 1994-95 seasons. The total
amount of claims paid to the farmer was Rs. 1178.76 crores but more than half of this amount
were accounted for Gujarat (Economic Review 1995-96). The adverse claims ratio indicates that
there is need to improve the parameters of the scheme to make it financially viable. The seasonwise progress of CCIS is shown in the following table.

Refer to table-1.1. The numbers of states/union territories included under CCIS increased up to
Kharif 1987 and Rabi 1987-88. Intuitive logic is that the interest of states/union territories
increases and as well as the farmers are more interested in this scheme. Besides the Kharif crops
are cultivated all over the country. After Kharif 1987 included states under the CCIS fall in
Kharif 1988 due to heavy drought, floods and high claims ratio. In the remaining Kharif and
Rabi season the states/union territories under CCIS are more or less the same. After Rabi 19879

88, the states/union territories in Rabi 1988-89 decrease tremendously. It may be regarded that
the quantum jump in claims and heavy losses, the scheme was temporarily suspended in January,
but after some modifications the scheme was reintroduced in September 1988. Therefore after
Rabi 1989-90 the number of the states/union territories was increased.

Table-1.1. Progress of Comprehensive Crop Insurance Scheme (CCIS) from Kharif 1985 to Rabi
1992-93
Kharif 1985 to Rabi 1992-93
Season

No. of
States/UT
s

No. of farmers
Covered (lakh)

Area covered
(lakh hectares)

Sum
Insured
(Rs. Crore)

Premium
Collected
(Rs. Crore)

1
Kharif 1985
Rabi 1985-86
Kharif 1986
Rabi 1986-87
Kharif 1987
Rabi 1987-88
Kharif 1988
Rabi 1988-89
Kharif 1989
Rabi 1989-90
Kharif 1990
Rabi 1990-91
Kharif 1991
Rabi 1991-92
Kharif 1992
Rabi 1992-93

2
13
16
18
17
21
19
13
9
17
17
17
16
17
15
17
16

3
26.4
12.1
39.6
11.3
46.3
21.3
29.6
8.7
42.3
6.6
19.4
7.9
37.6
7.8
41.2
7.4

4
53.7
23.2
77.4
21.0
84.1
32.4
52.4
10.1
66.5
9.6
34.1
10.7
68.6
11.0
72.3
10.1

5
542.7
238.4
856.2
242.4
1140.7
475.4
547.9
164.1
873.9
151.6
515.1
196.3
931.4
199.9
1154.7
228.1

6
9.4
4.5
15.0
4.5
19.1
8.8
8.8
3.1
14.5
2.8
7.7
3.5
14.4
3.6
18.1
4.1

Claims
Paid/Payab
le
(Rs. Crore)
7
84.1
3.1
169.4
4.6
277.4
12.1
29.2
3.9
34.4
2.9
81.6
4.0
195.0
8.8
43.7
7.0

Source: Economic Survey 1993-94

In the Kharif 1989, Kharif 1991 and Kharif 1992 seasons, the number of states/union territories
remains the same (seventeen) but the numbers of the insured farmers and the insured area as well
as sum insured were increased, that is, in these seasons the interest of the farmers about the CCIS
was increased. The number of states/union territories in the Kharif 1990 is seventeen but the
number of insured farmers, insured area and sum insured were decreased compared to the
previous year and also the claims or indemnity is high compared to the previous year. On the
other hand for Rabi season crops, the number of insured farmer and area and sum insured
sometimes increases and sometimes decreases.
10

The comprehensive crop insurance scheme included loanee farmers alone. Now to include nonloanee small and marginal farmers growing specified crops in selected districts under the crop
insurance scheme, an Experimental Crop Insurance Scheme was introduced by the Government
of India during Rabi 1997-98 seasons. The scheme is intended to be implemented in 24 districts
of 8 states in that season. The premium of small and marginal farmers was totally (100 percent)
subsidized by the Central and State Government in the ratio of 4:1(Economic Survey-1998-99)
and all other features of the scheme will be the same as that of the CCIS. The scheme has been
discontinued from Kharif 1998 season. But an expanded crop insurance scheme that will cover
all farmers and more crops is still under consideration of the Government.

The National Agricultural Insurance Scheme (NAIS) was introduced in Indian agriculture from
Rabi 1999-2000 season by replacing the Comprehensive Crop Insurance Scheme (CCIS).The
scheme was implemented by the General Insurance Corporation India (GICI) on behalf of the
Ministry of Agriculture. The new scheme included all types of farmers-loanee and non-loanee
farmers, with regard to their land holdings or indebtedness.

The main objectives of the scheme are mentioned below.

To provide insurance coverage and financial support to the farmers in the event of failure
of any of the notified crop as a result of natural calamities, pests and diseases so as to
restore their credit worthiness for ensuing season.
To encourage the farmers to adopt progressive farming practices, high value inputs and
higher technology in Agriculture.
To stabilize farm incomes, particular in disaster years.

The NAIS implemented that types of crops for which existing data is available for adequate
numbers of years. This insurance scheme at present included all the food crops (cereals, millets
and pulses), oilseeds and seven annual commercial/horticultural crops and further it covered
eleven annual commercial/horticultural crops, namely, sugarcane, potato, cotton, ginger, onion,
turmeric, chilies, jute, tapioca, annual banana and pineapple.
11

The scheme (NAIS) operates on the basis of area approach for widespread calamities and on an
individual basis for localized calamities, such as hailstorm, landslide, cyclone and flood. Under
the scheme every participating States/Union Territories will be required to reach the Gram
Panchayat level as the unit of insurance in a maximum of three year period. The scheme charges
the premium rates at 3.5 percent (of sum assured) for bajra and oilseeds, 2.5 percent for other
Kharif crops; 1.5 percent for wheat and 2 percent for other Rabi crops. On the other hand,
actuarial rates are being charged in case of annual commercial/horticulture crops. In the
premium, 50 percent of the subsidy is given to the small and marginal farmers and equally
(50:50) shared by Central and State Government (Economic Survey 2001-02).The premium
subsidy has been gradually phased out on a sun-set basis over a period of five years and at
present only 10 percent subsidy is available to small and marginal farmers (Economic Survey
2003-04).

Initially in 16 States/Union Territories, the said scheme (NAIS) was implemented, during Rabi
1999-00 and later in 2000-01 seasons two more states such as Sikkim and West Bengal included
under this scheme. So at present this scheme included 23 States and 2 Union Territories
(Economic Survey 2003-04). The progress of the NAIS is shown by the following table (8.15):

Table-1.2. Performance of National Agricultural Insurance Scheme (NAIS)

Sl.No.

Season

1
2
3
4
4
5
6
7
8
9
10
11
12
13
14

Rabi 1999-00
Kharif 2000
Rabi 2000-01
Kharif 2001
Rabi 2001-02
Kharif 2002
Rabi 2002-03
Kharif 2003
Rabi 2003-04
Kharif 2004
Rabi 2004-05
Kharif 2005
Rabi 2005-06
Kharif 2006
Rabi 2006-07
Total

Number of farmers
covered (lakh)
5.8
84.1
20.9
87.00
19.6
97.7
23.3
79.7
44.2
126.9
35.3
126.7
40.5
129.3
49.8
970.8

Area (lakh
ha)
7.8
132.2
31.1
128.9
31.5
155.3
40.4
123.6
64.7
242.7
53.4
205.3
72.2
196.7
76.3
1562.1

Source: Economic Survey 2006-07

12

Sum assured
(Rs. Crore)
356.4
6903.4
1602.7
7,502.5
1497.5
9431.7
1837.6
8114.1
3049.5
13170.5
3774.2
13547.7
5069.5
14759.1
6592.6
97209

Premium
(Rs. Crore)
5.4
206.7
27.8
261.6
30.2
325.5
38.5
283.3
64.1
458.9
75.9
449.9
104.8
467.3
142.9
2942.8

Total claims
(Rs. Crore)
7.7
1222.5
59.5
493.5
64.7
1824.3
188.6
649.9
490.7
1037.6
160.6
1054.8
252.3
1771.6
477.0
9755.3

Refer to table-1.2. The number of insured farmers in the Rabi season is increased all the years
except Rabi 2000-01 and Rabi 2004-05. The area under crop insurance is also increased all the
year except the Rabi 2004-05. We point out that the interest of the farmers under the NAIS is
increasing for Rabi crop. In the Rabi 2004-05 both insured farmer and area decrease but the sum
insured increases. The intuitive logic behind is that the amount of loan taken by insured farmers
increases.

Similarly for Kharif season crops, the number of insured farmers was increased all those years
except Kharif 2003 and Kharif 2005. The area under this crop was increased all those years
except Kharif 2001, Kharif 2003 and Kharif 2005. In the Kharif 2001 both insured farmers and
sum insured were increased but insured area was decreased. The insured farmers and area as well
as sum insured were all decreased in Kharif 2003. The intuitive logic behind this is that in the
previous year (Kharif 2002) the farmers were affected by natural calamities or the numbers of
defaulter farmers were increased. In the Kharif 2005 both the insured farmers and insured area
were decreased but the sum insured was increased due to increase in the amount crop of loan
taken by farmers.

From this table it is noticed that for the crop of Rabi and Kharif season some amount of claim
should be paid to the farmers in every season. Insurance claim or indemnity due to crop damage
is very high for the crop of Kharif 2002 and Rabi 2003-04. The logic behind this is that the
numbers of affected farmers due to natural calamities are more than that of other years.

Again to strengthen confidence in the existing Seed Breeders/Growers and to provide financial
security to seed Breeders or Growers in the event of failure of seed crops, the Government of
India implemented Pilot Seed Crop Insurance for indentified crops (viz. paddy, wheat maze,
jower, bazra, gram, red gram, ground nut, soya bean, sunflower and cotton) in the states of
Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Punjab,
Rajasthan and Uttar Pradesh from Rabi 1999-2000 season ( Economic Survey 2000-01).

13

The scheme covers all the natural risk as follows.

Failure of seed crop either in full or in part due to natural risk;
Loss in expected raw seed yields;
Loss of seed crop after harvest; and
Loss at seed certification stage.

The Pilot Seed Crop Insurance scheme charges the premium rates for wheat and groundnut
which are 2 percent of the sum insured, 2.5 percent for sun flower, 3 percent for paddy, 3.5
percent for Jowar and Bazra and 5 percent for gram, red gram cotton, Bazra, Soya Bean and
Maize (Economic Survey 2001-2002).

The Department of Agriculture and Cooperation provided the Farm Income Insurance Scheme
(FIIS) in Rabi 2004 in18 district of 12 states for wheat and paddy on a pilot basis. This scheme
was also implemented in the selected districts of four states on pilot project basis during Kharif
2004 season. This is shown in the following table.

Table-1.3. Farm Income Insurance Scheme (FIIS)

States implementing FIIS during Kharif 2004 season
Sl.No.

States

Districts

Jharkhand

West Singhbhuim, Ranchi, Hajaribagh and Gumala

Gujarat

Ahmedabad, Panchmahal, Surat, Baroda and Bulsad

Maharashtra

Bhandra, Chandrapur, Gadchiroli,Raigarh and Thane

West Bengal

Birbhum, North 24 Parganas, Murshidabad and Jalpaiguri

BBSurvey
l 2004-05
Source: Economic

The Firm Income Insurance Scheme (FIIS) is Crop Income insurance scheme and it is designed
to protect the income from a particular crop.

The main objectives of the FIIS are given bellow: farmers will be protected by ensuring
minimum guaranteed income.
14

If the actual income of the farmers falls sort of the guaranteed income (product of
average yield and Minimum Support Price) they would be eligible for compensation to
the extent of indemnity from the Agriculture Insurance Company of India Limited (AIC).
Area approach as in NAIS would be used for actual yield and price measurement of the
insured crop.
Initially the scheme would cover paddy and wheat only.
The scheme would be available for all the States and would be compulsory for farmers
availing crop loans.
NAIS will be withdrawn for the crops covered under FIIS but would continue to be
applicable for other crops (Economy Survey 2003-04).

From the analysis of the features of the NAIS, it observed that the scheme suffered from certain
limitations/short comings relating to unit area of insurance calculation of guaranteed income, low
indemnity level and delay in settlement of insurance claims, and for having these limitations, and
then the National Common Minimum Programme (NCMP) provided to redesign the crop
insurance scheme. To overcome some of the limitations and to make the scheme more farmerfriendly, a Joint Group was constituted to study the improvement required in the existing crop
insurance scheme. The Joint Group made important recommendations like reduction in the unit
area of insurance to Gram Panchayat for major crops, improving the basis of calculation of
threshold yield, higher indemnity level coverage of pre-sowing/planting risk and post-harvest
losses, personal accident insurance cover etc (Economic Survey 2007-08). Now, based on the
recommendation of the Joint Group and views/comments of various stake holders (States/Union
territories and concerned department/agencies), modification of the existing NAIS is under
consideration of the Government.

Agricultural Insurance Corporation which was formulated in December 2002 started its activities
from April 2003 and also took over the performance of National Agricultural Insurance Scheme
(NAIS). The AICIL introduced Rainfall Insurance Scheme which is known as Varsha Bima
during 2004, south-west monsoon period. Initially, Varsha Bima was piloted in 20 rain-gauge
areas spread over Andhra Pradesh, Karnataka, Rajasthan and Uttar Pradesh in2004-05
15

(Economic Survey 2006-07). Again, during Kharif 2005, Varsha Bima-2005 introduce around
130 districts across Andhra Pradesh, Chhattisgarh, Gujarat, Karnataka, Maharashtra, Madhya
Pradesh, Orissa, Tami Nadu, Uttarakhanda and Uttar Pradesh. This scheme was introduced for
the major crops. Further during 2006, Varsha Bima-2006 was implemented around 150
districts/rain gauge stations areas, covering 16 states across the country. Also the AICIL is
piloting another weather related insurance product for mango and coffee.

The AICIL has implemented the Weather Based Crop Insurance Scheme (WBCIS) on a pilot
basis in Karnataka during Kharif 2007 and covering eight rain-fed crops, insuring crops on
nearly 50,000 hectares for a sum-insured of Rs 50 crore. In 2007-08, this scheme was
implemented on a large scale in selected areas of twelve States for Rabi 2007-08 seasons
(Economic Survey 2007-08). In addition to AIC, private insurers like ICICI-LOMBARD
General Insurance Company and IFFCO-TOKIO General Insurance Company have also been
included for selected areas. Now the Weather Based Crop Insurance Scheme (WBCIS) is being
implemented in thirteen states to provide insurance protection to farmers against adverse weather
incidence such as deficit and excess rainfall which are deemed to impact adversely the crop
production. During five crop seasons (from Kharif 2007 to Kharif 2009), about 21.77 lakh
farmers have been covered under the pilot scheme and claims to adjust of about Rs. 388 crore
have been paid against a premium of about Rs. 444 crore (Economic Survey 2009-10).

The Agriculture Insurance Company of India (AIC) implements the Coconut Palm Insurance
Scheme (CPIS). This scheme has been launched on pilot basis during 2009-10 in the selected
areas of Andhra Pradesh, Goa, Karnataka, Kerala, Maharashtra, Orissa and Tamil Nadu. The
pilot scheme will continue during 2010-10. To get benefit from the scheme, a farmer should have
at least 10 healthy nut-bearing palms in the age group four to sixty years in contiguous area/
plots and to have been enrolled by the State Agriculture/ Horticulture Department of Coconut
Development

Board

(CDB)

or

any

other

such

agency

under

rehabilitation/development/expansion scheme. The Agriculture Insurance Company of India

(AIC) which is implementing the scheme is responsible for making payment of all claims within
16

a specified period. The Coconut Development Board (CDB) administered the scheme (Economic
Survey 2009-10).

In fine, it is to be noted that so far various agricultural insurance schemes have been introduced
and implemented for some years to protect the farmers from crop failure. But in spite of that the
case of suicide has been increased day by day all over the country. The main reason is that the
bureaucrats in the agriculture ministry have no clear understanding of the problems of our
farmers. They continue with their insurance experiments-sometimes for specific crops,
sometimes for stable farm incomes, sometimes for specific areas. In the meanwhile, farmers
suffer from crop failures and commit suicides in different parts of the country (Indian
Economy- Dutt and Sundharam, 61th fully Revised Edition, page 610).

1.4. Brief History about Crop Insurance System in West Bengal

West Bengal, compared to the other eastern states, is one of the significant agricultural
dependent states, of India. The agriculture sector is the main source of the state gross domestic
product (Nearly 26.37% of GDP come from this sector at constant 1993-94 prices, Economic
Review 2003-2004). It is also the prime earning sector of the major rural population. The state
economy heavily depends upon the agriculture and the performance of this sector has been well
above the national average. Around two third of state population directly depends upon the
agriculture sector (Govt. of India 1992). In order to overcome the backwardness of agriculture
the governments have taken the green revolution policy in the early 1970s.

However, after the green revolution the technological and economic advancements has taken
place, but the condition of farmers is continuously unstable due to natural calamities (such as
hail, drought, floods etc.) and price fluctuations. The effect of this variability is highlighted when
the news of farmers suicides came from many parts of the state. Then, the crop insurance is
one of the important instruments for protecting the farmers from agricultural variability. By the
crop insurance, the insured farmers get indemnities from the insurer, on the basis of their
insurance premium against their crop loss. The indemnities are paid to the farmers either on the
individual basis approach or the area yield basis approach. The present crop insurance program
17

in West Bengal is based on homogeneous area yield approach. Under this approach, if the area
yield is less than the guaranteed yield, all insured farmers in the area, irrespective of their actual
yields, are compensated on an equal basis. If the area yield is more than the guaranteed yield, no
indemnity is paid even if some farmers have low yields. Consequently it is very necessary to
expand the crop insurance policy into the agriculture for all types of farmers.

In West Bengal, due to increase in population, the dependence on the agriculture sector
increases, and also fragmentation and sub-division of land increases. As a result amount of the
holding per-owner decreases. Therefore, the numbers of small-holding and marginal-holding
farmers increases. Most of the small and marginal farmers are economically very weak and for
the agricultural purpose they are to borrow money from village money-lenders and other close
relatives or friends. In that situation, if any natural calamity occurs the agricultural production is
damaged and finally the revenue of the small and marginal farmers decreases. They are to turn
into an economically very poor section in the rural sector. If the crop insurance is properly
implemented, it will protect the interest of the farmers who are capable of mortgaging of their
land. Since, the poor farmers in the category of small and marginal are often not in the position
of mortgaging their land they are deprived of the benefit of crop insurance and crop loan.

The General Insurance Corporation of India (GIC) introduced a crop insurance scheme in 23
areas of West Bengal in collaboration with the state government and delivers crop insurance
through rural financial institution. The crop insurance united with crop loan and subsidy was
equally shared by the central and state government. This scheme is based on the homogeneous
area yield approach and on voluntary basis.

Over a long period of time, the state West Bengal comes under the NAIS or the Rashtriya Krishi
Bima Yojana (RKBJ) from Rabi 2000-01 season. The scheme is operated in the state by the
GICI. It was started at the Gram Panchayat level for Aman rice, Boro rice and Potato and at the
Block level for Jute, Aus rice, Mize, Wheat, Mustard and at the district level for Musur, Gram,
Maskalai, Arhar, Mung, Linseed and Til. The Department of Agriculture and Cooperation
provided the Farm Income Insurance Scheme (FIIS) on pilot project basis during Kharif 2004
18

season in the four district of West Bengal. These districts are Birbhum, North 24 Parganas,
Murshidabad and Jalpaiguri. The objectives of the FIIS have been enlightened in the previous
chapter. Besides, the minister for agriculture, Narendra Nath Dey has suggested that the
government should introduce an insurance scheme for seed like the crop insurance scheme.
Because the farmers whose crop fails due to low quality of seed should be provided
compensation. At the same time, steps should be taken to increase seed production significantly
to avoid over dependence on imported seed.
The progress of NAIS or RKBY for Rabi crop has shown in the following table from 2001-02 to
2007-08.

Table-1.4. Progress of NAIS or RKBY from 2001-02 to 2007-08

Seasons

Rabi (2001-02)

Rabi (2002-03)

Rabi (2003-04)

Crops

Boro, wheat,
potato, oilseeds
and pulses
Boro paddy,
potato, wheat,
Mustard
Mustard, paddy,
potato, and
wheat

No. of farmer
Covered

Sum insured
(Rs.lakhs)

Total
Subsidy(Rs.lakhs)
Premium
(Rs.lakhs)
States
Total
Total
shares

S/M

Total

S/M

Total

320450

321733

20565

20932

519

204

102

325254

326416

NA

NA

NA

NA

NA

366521

368141

NA

29454.7

775.76

152.44

NA

40504.92 1193.42

117.4

47479.62 48471.05 1274.97

124.99

62.49

452077

454319

Rabi (2005-06)

Mustard,boro
paddy, wheat,
and potato
Same as above

480177

482539

Rabi (2006-07)

Same as above

570714

574491

65604

67334

1655.33

178.64

89.32

Rabi (2007-08)

Same as above

592777

595682

23294

23588

529.77

58.03

29.01

Rabi (2004-05)

S/M- Small and Marginal Farmers, NA- Not Available

Source: Various issues of Economic Review of West Bengal
Rabi Season-1st October to next year February

19

The Boro rice and potato, winter crop, have been notified at the Gram Panchayat level since
2002-03 onwards and other winter crops such as wheat, mustard, notified at Block level in West
Bengal. The above table highlights that most of the small/marginal farmers have insured their
crops and others farmers are very small. In 2001-02, 321733 farmers in total who produced Rabi
crops insured their crops. Among them 320405 farmers are small and marginal. From the above
table we notice that the crop insurance also becomes popular especially to the small and marginal
farmers of the reaming years. Among the total sum insured near about 98 percent loan is sum
insured by small and marginal farmers from 2001-02 to 2007-08.The affected Rabi season
(2002-03) crops have shown in the following table.

Table-1.5. Affected Farmers in the Rabi Season (2002-03)

Claims Rs.

Total

Total

Potato

NA

NA

74158

Rs.38.64
crore

Wheat

NA

NA

NA

32.79
thousand

Mustard
Boro
Paddy

NA

NA

NA

2.28 lakh

NA

NA

46243

4.23 crore

85.08 lakh

Others

85.08 lakh

S/M

Claims Paid (Rs.)

State
Central
GICI
Govt.
Govt.
5.56
16.54
16.54
crore
crore
crore
2.55 crore

Crops

2002-03 Rabi Season

No. of Farmers affected

Years

Source: Report on the West Bengal Economy Volume II Number 2, 2003

S-Small farmer, M-Marginal farmer, NA-Not Available
Rabi Season-1st October to next year February
GICI-General Insurance Corporation of India

Refer to table-1.5. In 2002-03 Rabi seasons, the farmers cultivating Potato, Wheat, Mustard and
Boro Paddy are affected by rain and hailstorm. In this season the number of the insured potato
producing farmers was 129084, wheat producing farmers was 433, mustard producing farmers
was 814 and Boro paddy cultivating farmers was 196085 (Report on the West Bengal Economy
Volume II Number 2, 2003) . Among the affected crops, potato was largely affected by natural
calamities such as rain and hailstorm. More or less 74158 insured Potato farmers (approximately
57.45 percent of total insured Potato farmers) were affected. On the other hand, around 46243
Boro paddy cultivators (23.6 percent of total insured Boro paddy farmers) were affected. Though
Potato and Boro paddy both are risky crops, the first one is risky more than the Boro paddy.
20

Potato cultivating farmers are generally affected more by natural hazards. The Potato producing
farmers claimed insurance relief of Rs. 38.64 crore and that was paid to them by GICI (Rs.5.56
crore), State Government (Rs.16.54 crore) and Central Government (Rs. 16.54 crore). However,
Boro, Wheat and Mustard cultivating farmers jointly claimed insurance relief of Rs. 4.25 crore
and this was paid by GICI (Rs. 2.55 crore), State Government (Rs. 85.08 lakh) and Central
Government (Rs. 85.08 lakh).The affected Rabi Season (2004-05) crops have shown in the
following table

Table-1.6. Affected Farmers in the Rabi Season (2004-05)

Year
2004-05
Rabi
Season

Crops

No. of farmers affected

S/M
Others
Total

Sum Insured (Rs.)/Claims

S/M
Others
Total

Mustard

440

42

482

19.94 lakh

3.73 lakh

23.67 lakh

Boro Paddy

59175

480

59655

39.2 crore

1.5 crore

40.7 crore

Wheat

55

00

55

4.5 lakh

0.00

4.5 lakh

Total

59670

522

60192

S-Small Farmers, M-Marginal farmers

Source: Economic Review of West Bengal 2005-06
Rabi Seasoon-1st October to next year February

Refer to table-1.6. In the 2004-05 Rabi season mainly three important crops were adversely
affected by natural hazards such as rain, hailstorm and besides these two there are low qualities
of seeds, low market price of agricultural commodities. Near about 60192 insured farmers who
produced mustard, Boro paddy and wheat were affected. Among the total affected farmers
approximately 99.10 percent (59655) Boro paddy producing insured farmers were affected and
very small number (55 farmers that is 0.091 percent) of wheat cultivating insured farmers was
affected. In this season all the affected farmers were fully compensated for their damaged crops.

The Rabi crops cultivating insured

farmers were also affected by natural calamities, low

qualities of seeds, low market of agricultural commodities, etc in the years of Rabi 2005-06,
Rabi 2006-07 and Rabi 2007-08.The affected Rabi season crops have shown in the following
table. In Rabi 2006-07 a large numbers of farmers (approximately 53.09 percent of total insured
farmers) were largely damaged by natural hazards. The compensation was paid to them
amounting to Rs. 218.16 crore that was higher than the remaining two affected years. The
21

insurance claim was paid by GICI, the state government and the central government. The
affected numbers of farmers in the Rabi season crops are shown in the following table-1.7.

Table-1.7. Affected Farmers in the Rabi Seasons

No. affected farmers
Years

Crops

Rabi
2005-06
Rabi
2006-07
Rabi
2007-08

Potato, Wheat, Mustard,

and Boro Paddy
Potato, Wheat, Mustard,
and Boro Paddy
Potato, Wheat, Mustard,
and Boro Paddy

Claims Paid or Compensation (Rs.

Lakh)
Central
GICI
Total
Govt.

S/M

Total

State
Govt.

NA

137000

1262.41

1262.41

1833.18

4358

NA

305000

9675

9675

2466

21816

NA

39546

NA

NA

NA

887

NA-Not Available, S-Small farmers, M-Marginal farmers, GICI-General Insurance Corporation of India
Source: Various Issues of Economic Review of West Bengal; Rabi Season-1st October to next year February

Now the progress of the crop insurance scheme (RKBY) for Kharif crops is shown in the table
given below.

Table-1.8. Progress of RKBY for Kharif Crops

Years

Kharif
2002
Kharif
2003
Kharif
2004
Kharif
2005
Kharif
2006
Kharif
2007
Kharif
2008

Crops

No. of Farmers
S/M
Others

Total

Sum
Insured(Rs.
Lakh)

Total
Premium (Rs.
Lakh)
NA

Subsidy(Rs.Lakh)
Total (Rs. States
Lakh)
share
137.02
68.51

481.76

95.07

47.54

Aman Paddy
Aus Paddy
Aman Paddy

404351
NA
378398

1367
NA
1628

405718
380026

18529.00
6.00
19270.25

Aus Paddy
Aman Paddy
Aus Paddy
Aman Paddy
Aus Paddy
Aman and
Aus Paddy
Aman and
Aus Paddy
Aman and
Aus Paddy

6
352749
198
413391
74
425054

00
1218
00
1387
00
1802

6
353967
198
414778
74
426856

19650.70
18.51
25009.83
13.26
28548.75

491.27
0.46
625.25
0.33
713.71

48.49
0.04
61.74
0.033
70.24

24.27

455002

2033

457035

33896

766.04

83.44

41.72

312451

917

313368

23588

529.77

58.03

29.01

S-Small farmer, M-Marginal farmer, NA- Not Available

Source: Various Issues of Economic Review of West Bengal
Kharif Season- 2nd April to 14th August in every year

22

30.91
35.12

In the Kharif season, two important rice crops such as Aman and Aus paddy are cultivated by
farmers. Aman paddy which is produced by a large number farmer (nearly 99 percent) is heavily
depended on the south-western monsoon and it is produced all over the parts of the state. It is
less risky crop compared to other Kharif crops and is insured at the Gram Panchayat level, that
is, the indemnity is also paid at the Gram Panchayat level to the affected farmers. On the other
hand, only few farmers cultivate Aus paddy and also less risky crop. This paddy is insured at the
block level in the State.

The above table (table-1.8) gives the picture that the crop insurance become popular among
small and marginal farmers, specially, to the farmers cultivating Aman paddy. Such as, 405718
farmers insured their crops for Aman paddy in the Kharif 2002, among them 404351 farmers
(nearly 99.66 percent) were small and marginal. In the Kharif 2003, 380026 farmers cultivating
Aman paddy insured their crops. Among them, 378398 farmers (near about 99.57 percent) were
small and marginal. In this year only six farmers insured their crops for Aus paddy. Similarly in
the remaining year the insurance scheme also becomes catching up among small and marginal
farmers. Affected Kharif years and farmers have been explained with the help of the following
table.

Table-1.9. Affected Farmers in the Kharif Season

No. affected farmers
Years

Crops

Kharif
2002

Aman
Aus
Aman
Aus
Aman
Aus
Aman
Aus

Kharif
2005
Kharif
2006
Kharif
2007

S/M
27284
51
NA
NA
NA
NA
NA
NA

Total

Claimed or Compensation (Rs. Lakh)

Central
State Govt.
GICI
Total
Govt.

27335

Nil

Nil

51.51

51.51

140000

1364

1364

627

3355

42854

58

58

713

829

132813

NA

NA

NA

4025

NA-Not Available,
Source: Various Issues of Economic Review of West Bengal
Kharif-2nd April to 14th August (Every Year)

23

Refer to table-1.9. In Kharif 2002, about 27335 insured farmers producing Aman and Aus Paddy
were affected by natural calamities or due to low qualities of seeds or delay of monsoon etc.
Among the affected farmers only 51 insured farmers cultivated Aus paddy and 27284 insured
farmers (99.81 percent of total affected farmers) produced Aman rice. In this season all the
affected farmers were small and marginal. Approximately 6.75 percent insured small and
marginal farmers were damaged by natural hazards among 99.66 percent of total insured small
and marginal farmers who were producing insured Aman rice. The above table also reveals that,
in Kharif 2005 higher number of small and marginal insured farmers was damaged compared to
the other years when the crop was damaged. Though, small and marginal Aman and Aus
cultivating insured farmers suffered from damage in Kharif 2002, Kharif 2005, Kharif 2006 and
Kharif 2007 the number of insured farmers has been increased every year succeedingly (except
2008). It reminds that the interest of the farmers about crop insurance goes on increasing in West
Bengal. The total insurance claims or insurance relief was fully paid by the GICI in Kharif 2002
but in the reaming years insurance claims were paid by GICI, the West Bengal Government and
the Central Government where the central and state government paid insurance claims on the
same amount.

1.4.1. Weather Based Crop Insurance Scheme (WBCIS)

The West Bengal Government implemented pilot Weather Based Crop Insurance Scheme
(WBCIS) from Rabi 2009-10 in selected Blocks and Districts. The Scheme is meant for Nonloanee farmers only on Optional basis. Loanee farmers shall be covered compulsorily under
NAIS as notified earlier. The emergence of this Scheme lays with inherent shortcomings of
existing NAIS. They are (1) lengthy process of claim settlement resulting in delayed claim
payment, (2) Threshold Yield (TY) based on preceding Yield data of three or five years, (3)
huge cost involved in Crop yield estimation, (4) Adverse selection of risk and no provision for
compensation in case of crop failure in initial stages of cultivation. Whereas it has been proved
that rainfall variations alone accounts for more than fifty percent (50%) of variability in Crop
Yield and Indian Crop Insurance Programmes since 1979 (PCIS, CCIS, ECIS, NAIS, FIIS, etc)
have paid ninety percent (90%) of claims due to uneven rainfall, dry spell, drought and flood.
Keeping in view of above facts, pilot Weather Based Crop Insurance Scheme (WBCIS) is an
24

attempt of Government of India to assess crop yield losses through measuring various weather
parameters such as Rainfall, Temperature, frost and relative humidity etc. Based on our expertise
and years experience in the field of agricultural insurances as above, Agriculture Insurance
Company of India Limiteds (AICILs) WBCIS Term Sheets have been designed in such a
manner that farmers can be compensated at various phases of crop growth contrary to the Final
Yield Estimation method through Crop Cutting Experiments (CCEs) under NAIS. Historical
correlation studies of crop yield with weather parameters has helped us in developing weather
threshold (Triggers) beyond which crop starts getting affected adversely. Payout structures have
been designed to compensate the cultivators to the extent of losses deemed to have been suffered
by them using the weather triggers as proxy for crop yields. Hence, WBCIS is not a Yield
guarantee Scheme.

The salient features of AICILs pilot WBCIS are given below.

Notified Districts, Notified Blocks and Crops:
Districts
West Midnapur
East Midnapur

East Midnapur
Hooghly
Jalpaiguri

Blocks i.e. Reference

Unit Area
Debra, Pingla
and
Sabang
Egra-I, Egra-II, ContaiI, Contai-II, Contai-III
(Kanthi)
Ramanagar-I,
Ramanagar-II
Haripal, Singur
Jalpaiguri
Sadar,
Rajgunge

Crops

Reference Weather
Station
IMD, Medinipur

Back-up Weather
Station
WBAMD, Pingla

Boro Paddy

IMD,
(Kanthi)

WBAMD, Kanthi or
Digha

Boro Paddy

IMD, Digha

WBAMD, Digha

Boro Paddy
Boro Paddy

IMD, Bagati
IMD, Jalpaiguri

WBAMD, Singur
WBAMD,
Mohitnagar

Boro Paddy

Contai

The WBCIS shall operate on the principle of Area Approach in Selected Notified Areas that
is above mentioned Blocks. The Reference Unit Area is a geographical area around a Weather
Station, which will record and provide the data on Weather parameters like Rainfall,
Temperature and Relative Humidity etc. on daily basis. Those Weather parameters shall be
compared with Trigger parameters of Term sheets and shall form the basis of payout.
Cultivators eligible for coverage: All Non-loanee farmers growing notified crops in the
notified areas shall only be eligible for coverage during Rabi 2009-10 seasons on optional basis.
25

 Coverage of Risks: (1). Rise in Mean Temperature, (2). Un-seasonal/Excess Rainfall. In

case adverse weather incidences, these perils are deemed to cause crop loss during Rabi
season.
Coverage Period: Entire cover period has been splited into various stages of crop growth
based on required conducive weather conditions for each crop. However, broad cover period
would be for Boro Paddy: 15th February to 31st May 2010.
Sum Insured: Sum Insured is broadly equivalent to the cost of production and is pre-declared
in the Term Sheet per hector/Acre.
Premium Rates and Subsidy in premium: Actuarial Premium rate has been charged but
capped at 8%. However, the farmers (Small, Marginal and Others) shall pay at existing rate as
applicable under NAIS i.e. for Boro at the rate two percent (2%) of Sum Insured opted
plus Services Tax at the rate 10.30% on premium amount payable as extra provision
under WBCIS. The balance of premium shall be borne by Central and State Government on
50:50 basis. Actual premium amount payable by the farmer has been mentioned in the Term
Sheet per hector/Acre.
Compensation (Payout): Pay out shall arise ONLY in case of deviation between
TRIGGER WEATHER and ACTUAL WEATHER DATA recorded at the specified
IMD, Weather Station during the cover period and strictly as per payout structure of the Term
Sheet. Payout structure defines the Trigger Weather, the scale of payout for a given Trigger,
Exit point at which full payout payable. Payouts would be automatically computed by AIC on
the basis of Actual Weather Data and in such cases payouts would be automatically credited
to the insureds bank account or directly paid by Cheque. However, compensation/payouts
under WBCIS are no way linked with the actual crop loss suffered by the individual farmers
or crop loss assessed for the reference unit area i.e. BLOCK. In the event of non availability
of weather data from IMD due to any reason thereof, the weather data recorded in back-up
weather station maintained by State Agriculture Department would consider for pay-out.
Time Limit for Payout disbursement: All admissible payouts under this Scheme are well
within the responsibility of AIC. Hence, payouts would be made within fourty five days of
closing of cover period subject to receipt of Governments share of Premium Subsidy.
26

 Coverage procedure: Existing network of Financial Institutions (DCCBs, SKUS,s,

Branches of Commercial bank and RRB) at the grass-root level shall be paid a Service
Charge of five percent (5%) on actual premium amount remitted to AIC, by way of
sharing the incidental expenses incurred for servicing the scheme. Banks may take initiative
to persuade especially crop loan defaulter farmers to cover their crops under WBCIS.
Insurance coverage of Non-loanee farmers shall also be obtained through the Insurance
Intermediaries (Brokers) and Authorized Representative of company or directly with the
Company by paying premium by DD/depositing cash in our Axis Bank Account along with
submission of Proposal Form.
Cut-off Date for Insurance Coverage: Cut-off date for receipt of premium from the Nonloanee farmer is 15th February in the year. Banks may send the requisite declaration form
along with premium latest by 28th February in the year.

Although, pilot WBCIS is NOT a Yield Guarantee Scheme and based on Area approach, still
then it has received overwhelming response from farmers in the State during previous Rabi
2008-09 and Kharif 2009 season because of its promising nature of stage to stage insurance
coverage, appropriate payout structure and moreover specified time limit for payment of
compensation i.e. within fourty five (45) days after risk period.

Table-1.10. Performance of Weather Based Crop Insurance Scheme (WBCIS)

Season

Rabi
200809
Kharif
2009

No. of
Blocks
Notified

No of
Blocks
benefited

Farmers
Insured

2909

3947

Farmers
benefited

Blocks received
Claims/Payable
Bashirhat-I
(Wheat)
Egra-I and
Contai-III
Jalpaiguri Sadar
and Raigunge
Midnapur Sadar,
Debra

2823

2643

Premium
paid by
farmers per
hector.
253.00
674.00
552.00
552.00

Pay-out
received/sanctioned
by farmer per
hector.
550.00(High
Temperature)
1125.00 (Aila Rain)
5000.00 (Daily
Excess Rainfall)
981.00 (Daily
Excess Rainfall)

This table shows that the total number of notified blocks under WBCIS is thirteen and benefited
blocks is seven. The total number of benefited insured farmers is 5466 and affected blocks are
27

Bashirhat-I ,Egra-I and Contai-III, Jalpaiguri Sadar and Raigunge and Midnapur Sadar, Debra
due to High Temperature, Aila Rain and Daily Excess Rainfall.

1.4.1A. Types of Weather Based Crop Insurance Scheme (WBCIS)

The Weather Based Crop Insurance is started in West Bengal from Rabi season 2009-2010. In
the State there are two types of Weather Based Crop Insurance such as coverage-I and
coverage-II. The coverage-I is also known as Rise in Mean Temperature and coverage-II is
Un-seasonal/ Excess Rainfall.

Coverage-I: Rise in Mean Temperature

We briefly explain about Rise in Mean Temperature Weather Based Crop Insurance by the
Term Sheets. The objectives of this type of crop insurance are to provide cover for Rise in Mean
Temperature during cover period resulting in reduced plant growth and inducing early maturity.
The coverage period of this type of insurance is from February 15th to April 30th and the
definition of coverage is the cumulative upward deviation of Mean temperature from
fortnightly trigger temperature. But it is to be noted that the fortnights trigger temperature and
that of trigger temperature differ in case of different districts and different crops. The fortnights
trigger temperature is predetermined by the Agriculture Insurance Company of India (AIC)
(different in case of different districts and different crops) but the trigger temperature is
determined by the AIC following the report of the WBAMD of the different districts.

Now let us put an example of the system of crop insurance by AICI following the temperature of
different districts (A-Hooghly district, B-Murshidabad district) for Boro rice. The total insurance
limit is Rs.30, 000 for Boro rice and unit of area is hectare.

28

Table-1.7.1
District
Hooghly

Strike
temperature (0c)
Exit (0c)

Notional
Payout
per
Hectare
(Rs./0c)
Maximum
Payout per
hectare
(Rs.)
Nature of
cover

Fortnights
Trigger
Temperature

120c

Trigger Temperature Table

15th
February

28th
February

1st March

15th
March

16th
March

31th
March

1st April

15th
April

16th
April

30th
April

260c
280c
300c
320c
330c
Payout starts when the sum of deviation of daily mean temperature above the fortnightly
specified trigger temperature greater than 120c, during the cover period. Example: if the sum
of deviation is 220c the payout must be equal to 10(22-12)Rs.343= Rs. 3430/-

470c

Payout reaches maximum payout when the sum of deviation of daily mean temperature
above the fortnightly specified trigger temperature reaches 470c during the cover period.

Rs. 343/

Rs. 343/- will be paid per degree deviation (greater than 120c). Example: if the sum of
deviation is 320c, the payout stands Rs. 20 (32-12) 343= Rs. 6,860/-

Rs1200
0/-

During the insurance coverage in force the farmer would get maximum amount of
Rs.12000/- when sum of deviation of temperature reaches at 470c.
Aggregate of deviations during the cover period (that is from 15th February to 30th
April 2010 based on trigger temperature table).

Source: Agriculture Insurance Company of India Limited; Regional Office: OM Tower, 5th Floor, Chowringhee Road, Kolkata700071.

Coverage-II: Un-seasonal/ Excess Rainfall

The objectives are to protect the farmers from the damage of flower of the grains and the quality
following the Un-seasonal/ Excess Rainfall. The coverage time period is from March 16th to May
31st. The definition of coverage is Daily Rainfall (m.m) over Trigger Level. Example: if any
given day, daily rainfall exceeds the specified trigger level of phase wise cover period that is 40
m. m. for the first phase and 60 m. m. for the second stage, payout shall be made for excess
rainfall (mms.) at the rate of fixed plus (+) variables payout per mm. If the rainfall is recorded at
60 m. m. on 25th March, the payout would be Rs. 600/ [Rule 20 (60-40) Rs.30], this is the
payout for 25th March only (see Table-I). Similarly, the payout for each day can be calculated
during the cover period and phase-wise sum will be taken. The maximum payout could be Rs.
7200/ for the first phase and Rs. 10,800/ for the second phase per hectare that is total Rs. 18000/
under excess rainfall cover. This process is shown in the following tables.

29

Table-1.7.1.I
Coverage Period
Daily Rainfall (m. m)
more than
Nature of Cover:
Multiple
events

From March 16th to April 30th

Payout per hectare
Trigger
Fixed (Rs.)
40
0
60
600
80
2600
100
7200

Variable (Rs. per m. m)

30
100
230
0

Source: Agriculture Insurance Company of India Limited; Regional Office: OM Tower, 5th Floor, Chowringhee Road,
Kolkata- 700071.

Table-1.7.1.II
From May1st to May 31st
Payout per hectare
Fixed (Rs.)
Variable (Rs. per m. m)
0
50
1000
150
4000
340
10800
0

Coverage Period
Daily Rainfall (m.m)
more than
Nature of Cover:
Multiple
events

Trigger (m. m)
60
80
100
120

Source: Agriculture Insurance Company of India Limited; Regional Office: OM Tower, 5th Floor, Chowringhee Road,
Kolkata- 700071.

The Maximum payout per hectare is Rs. 18000/

Amount of indemnity: - Example: Suppose the initial rainfall is 100 m.m. The indemnity would
stand at Rs 4000/ - [20(100-80) Rs. 200 (50+150)].

Table-1.7.1.III: Details of Sum Insured and Premium (Rs.)

Unit

Per hectare
Per acre
Per decimal

Total Sum
Insured
(Rs.)
30,000
12,000
120

Share of
Farmers
(Rs.)
600
240
2.40

Share of Insurance Premium (Rs.)

Share of Central
Share of State
Total
Govt.
Govt.(Rs.)
(Rs.)
(Rs.)
900
900
2400
360
360
960
3.60
3.60
9.60

Share of farmers
with service tax
(Rs.)
662
265
2.65

Source: Agriculture Insurance Company of India Limited; Regional Office: OM Tower, 5th Floor, Chowringhee Road, Kolkata700071.

1.5. Need for Study

India is an agriculture based country. About 92 percent (Agriculture Insurance Company of India
Limited, Kolkata Office) people depend on agriculture directly. For having no adequate
30

irrigation facility farmers of India have to depend on nature. There is a common word that Indian
farmers are born in debt and die in debt. The main cause of this fact is loss of crops due to
natural calamities. Multidimensional progress of our country is not possible till the development
of the peasants and farming. For this purpose National Agricultural Insurance Scheme (NAIS)
has been taken into consideration for the security of the farming and the farmers employed in the
field of agricultural. This scheme (NAIS) has been running well for the session 2000-2001 with
the active assistance and agreement of the West Bengal Government (W.B Govt.).

We realize that the crop insurance has a great significance when we come to know that the
suicidal case of farmers has been increasing day by day throughout our country. Because the
main point of their suicide is that they (farmers) are compelled to borrow at a very high rate of
interest from non-institutional sources (village money lender etc.). They do not get any type of
facility for their crop loss (Such as indemnity, subsidy of price of fertilizers etc.). So only with
the help of crop insurance they may be saved from unprotected and risky farming system. To
save the farmers from this ruin conditions Central Government start NAIS from 1985 but it
comes in West Bengal in 2000-01. There are three basic objectives of Crop Insurance Scheme.

The objectives of crop insurance scheme are:

To protect the farmers against the loss of their crops [declared affected crops] due to
natural disasters such as hail, drought and flood etc. or the loss of revenue due to decline
in the prices of agricultural commodities.
To encourage the farmers to use progressive agricultural strategies, high yielding seeds
and fertilizers, and to use advanced technology in the agriculture.
To stabilize the income of the farmers in the years of natural calamities.

The crop insurance scheme also helps the farmers on the following grounds:
(1) Allocation of recourses: With the help of crop insurance the farmers enjoy the facility of
crop loan to its highest. The crop loan helps them to purchase the various means of
production and they allocate those factors properly.
31

(2) Proper utilization of the land: After having the crop loan the loanee farmers utilize their land
properly.
(3) Enhancement of production: The crop loan inspires the farmers to enhance their production
so that they could repay their loan after gaining some amount of profit.
(4) Livelihood security: As the farmers are insured against crop damage caused by natural
calamities they enjoy livelihood security from the insurer.

1.6. Objective of the Study

Nobody would deny the feasibility of introduction of crop insurance in agriculture. If the crop
insurance system is in force the farmers could be easily mobilized to face various hazards in
agriculture. They become interested to produce more risky and highly expensive crops with less
tension. There are two types of farmers: one is loanee farmers and other is non-loanee farmers.
The loanee farmers are those who take crop loan from various financial institutions. They are
automatically insured. The farmers who do not take crop loan from these institutions are called
non-loanee farmers. So they are not generally insured. If these farmers pay the requisite premium
rate to the insurer determined by the Government, are included under crop insurance scheme.

In the district of Hooghly under our study, it is observed that all insured farmers are loanee but
there are no non-loanee insured farmers. If the loanee farmers properly utilized their crop loan
for productive purpose, their income would have been generated as expected. After crop damage
due to natural calamities, if the insured farmers would have the opportunity to recover some part
of loss or total loss, they would have been more interested to crop insurance. Thus the crop
insurance acts as a safeguard to the farmers.

We have three definite basic objectives of our study. These objectives are mentioned below.
We measure the growth rate of area under cultivation, total output and yield rate of Aman
Paddy, Boro Paddy and Potato during the period 1990 to 2010.
We want to measure the growth rate to total NPK consumption and per acre NPK
consumption for Aman Paddy, Boro Paddy and Potato during the period 1990 t0 2010.
32

We want to study the growth rate of irrigated land as proportion to total land during the
period 1990 to 2010.
We also measure the growth rate of total revenue from Aman Paddy, Boro Paddy and
Potato.

We have collected secondary data from district statistical hand books of the district of Hooghly,
and the different issues of the economic review and the statistical abstract of the West Bengal.

There are five important objectives that have been considered on the basis of our secondary data
collected from district statistical hand books of the district of Hooghly, the different issues of the
economic review and the statistical abstract of the West Bengal the above sources and the
Regional Office of Agriculture Insurance Company of India Limited, Kolkata.
Impact of crop insurance on Area under cultivation, total production and yield rate of
Aman Paddy, Boro Paddy and Potato.
Impact of crop insurance on the total NPK and per acre NPK consumption of Aman
Paddy, Boro Paddy and Potato.
Impact of crop insurance on the irrigated land as proportion to total land.
Impact of crop insurance participation, total sum insured and premium collected on the
total area under cultivation and total production of Aman Paddy, Boro Paddy and Potato.
Impact of crop insurance on the total revenue from Aman Paddy, Boro Paddy and Potato.
Therefore, to analyze the above objectives we assumed linear functions that are estimated simple
by the ordinary least square method (to be detailed in Chapter Three).

We have collected panel data during the period 2006 to 2010 of three hundred fifty five farms by
field survey from our study district (Hooghly) in the State of West Bengal. All the farms are
divided into five categories, namely, marginal farms with land size less than one acre, small
farms with land size between one and two acres, medium farms with land size between two and
four acres, semi-medium farms with land size between four and ten acres and large farms with
land size more than ten acres. We have chosen three important explanatory variables such as
33

insurance participation for a crop, education level and time itself. Therefore, we have considered
the following objectives farms of all different sizes.
The objective of our study is to analyze the effect of the above stated three important
explanatory variables on the area under cultivation, total output and yield of Aman
Paddy, Boro Paddy and Potato.
We also want to study the impact of crop insurance participation on the input use for
three important crops such as Aman Paddy, Boro Paddy and Potato.
The above two objective will be considered by the suitable econometric model and methodology
(to be detailed in Chapter Three). Our intention is to look into the effect of different determinants
on the area under production, total production, yield rate and cost of the different factors of the
loanee farmers of different crops (Aman Paddy, Boro Paddy and Potato). We would also
examine the impact of crop insurance on area, output and yield, and on different inputs used by
farms of different sizes.

1.7. Socio Economic Profile of the Hooghly District

The objective of our present study is to find out the impact of crop insurance on agricultural
scenario for some selected crops in the district of Hooghly (West Bengal). The geographical area
of Hooghly district is 3149 square kilometer and number of Blocks is eighteen (18). The total
number of villages is (inhabited) 1897 and the number of villages electrified is 1897 (Hooghly
District Central Co-operative Bank Limited, 2010).

The predominant economic activities in the district are agriculture, animal husbandry, fisheries,
cottage and village industries, weaving, transport, business and services, SSI (small scale
industry) units etc. Weaving is the most important single activity offering highest employment
opportunity after agriculture. Some medium and large industries have come up besides the
national and express highways. In the district recently more emphasize is given for setting up
agro food industries. As per the latest statistics collected from Principal Agricultural Officer
(PAO), the production wise major crops in the districts are as under:
(i) Food crops: Paddy, Potato, Vegetable, Groundnut, Wheat, Mustard and Pulses etc.
(ii) Commercial crops: Potato, Jute, Groundnut and Vegetables.
34

(iii)Horticulture crops: Banana, Mango and Litchi

(iv) Floriculture: Raising of Tuberose, Rose, Merigold on commercial basis.

The financing of Self Help Group (SHG) is one of the most important activities in the district.
Formation of groups and financing thereof is being done mainly by Hooghly District Central Cooperative Bank Limited through PACS. The major areas of investment in the district are minor
irrigation, farm mechanization, animal husbandry, non-farm sector activities, services and
business and of course crop loans. In addition, the information technology is also developed
gradually in the district.

In the following subsection we are going to bring out some other characteristics of Hooghly
district.

1.7.1. Population
Population plays a pivotal role in per-capita income, which is the most important indicator of
economic development. The profile of population for the district of Hooghly is given below in
table-1.7.1

Table-1.7.1. Profile of Population in the District of Hooghly

Total Population in Census of
1991

Hooghly
4355230

District
West Bengal
68077965

2001
Decennial Percentage Variation of Population
(1991-2001)
Density of Population (per sq. Km) 1991
Density of Population (per sq. Km) 2001

5041976

80176197

1028737000

15.77%

17.77%

21.56%

1333
1801

767
903

273
325

Sex Ratio (number of female per 1000 male) 1991

Sex Ratio (number of female per 1000 male) 2001

918
943

917
934

927
933

India
846303000

Source: Director of Census Operation, West Bengal, 2001

Statistical Abstract (West Bengal)-2008

The table shows that the Hooghly district contains only 6 percent of the state population in both
census years. The district of Hooghly contains only 0.5 percent of the country population in both
35

census years. Though the decadal variation of population in the district of Hooghly is lower than
that of the state population but the density of population is very high. On the other hand, there is
no significant difference in the sex ratio between the district of Hooghly and the state of West
Bengal.

1.7.2. Literacy
Food, clothing, shelter, health and education are the most important fundamental needs of human
life. Of these, there is no doubt that education constitutes the most important entity in the lives of
human being. The quality of a man as productive agent and social human being increases with
the increase in education and training. The literacy rate of the district of Hooghly is given below
in table-1.7.2.

Table-1.7.2. Literacy Rate (percentage) for 1991 and 2001 (Excluding children in the age group
0-6)
District

Years
Hooghly

West Bengal

India

1991

66.78%

57.70%

52.19%

2001

75.11%

68.64%

64.82%

Source: Director of Census Operation, West Bengal

Statistical Abstract (West Bengal)-2008
Source: Census Reports

We note from the table-1.7.2 that the literacy in the district of Hooghly is far above the state
level as well as country level in both census years. While it was 68.64 percent in the state of
West Bengal in 2001, it was 75.11 percent in the district of Hooghly in the same year.

1.7.3. Land Utilization

The utilization of land for the purpose of production is also an important criterion for the
development of an agriculturally dominated economy. The utilization of land is directly related
with increasing output and income of the economy. The land utilization statistics are set in the
following table-1.7.3.
36

Table-1.7.3. Profile of Utilization of Land (in hectares) during 2007-08

Utilization of Land (in hectares)

District

Type of Land
Reporting Area
Cultivable Area
Area not Available for Cultivation Excluding Forest
Forest Area
Fallow Land other than Current Fallow
Current Fallow Land
Net Area Sown
Cropping Intensity

Hooghly
313379
223617 (71.36%)
89232 (28.47%)
530 (0.17%)
100 (0.032%)
340 (0.108%)
219910 (70.17%)
246

West Bengal
8684113
5227007 (65.95%)
1783437 (20.54%)
1173669 (13.51%)
20180 (0.23%)
310780 (3.6%)
5295770 (60.98%)
184

Source: Director of Agriculture, Evaluation Wing, Govt. of West Bengal

Statistical Abastract-2008 (West Bengal)

From table-1.7.3, it is observed that in the district of Hooghly about 71.36% of total land is used
as the cultivable land whereas it is only 65.95% in the state. When we look at the net area sown,
we see that the district of Hooghly contains 70.17% of total land. On the other hand, the state of
West Bengal contains only 60.98% of total land. Refer to table-1.7.3. We observed that cropping
intensity of the district of Hooghly is higher than that of the state of West Bengal.

1.7.4. Irrigation Development

The district is characterized by humid tropical climate with an average precipitation of 1279.7
mm. Over 70 percent of rainfall is received during the monsoon season extending from June to
September. The main sources of irrigation in the district are the rivers Bhagirathi and Damodar
and a number of tributaries. Geographically the tract is considered to be low delta region. This
has resulted in several pockets of low lying areas being subjected to floods and water logging.
By and large canals and shallow tubewell are the two major sources of irrigation in the district. A
major portion of available surface water resources is developed by Government Agencies in the
form of canals and river lift irrigation scheme.

We may distinguish between two types of irrigation, namely certain and uncertain irrigation.
Certain irrigation facilities include mainly canals, pumps and shallow tubewell, deep tubewell
etc. On the other hand, the uncertain irrigation facilities include pond, river, tank, branch and
sub-branch canals etc. These irrigation facilities are so much important that it increases the
37

agricultural production. The irrigation facilities in the district of Hooghly are specified in table1.7.4 below.

Table-1.7.4. Area Irrigated by Different Sources (in hectares) during 2007-08

District

Types of Irrigation
Hooghly
111600 (50.75%)
1441
378
0

Area Irrigated by Govt. Canals

Deep Tubewell (in number)
River lift irrigation
Shallow Tubewell

West Bengal
1283800 (24.24%)
8873
5424
16047

Source: Water Investigation and Development Department, Govt. West Bengal

Statistical Abastract-2008 (Govt. West Bengal)

From the table-D, it is being seen that in the district of Hooghly the percentage of irrigated area
by the Government canals is 50.75 percent whereas the corresponding figure for the state is only
24.24 percent. There is no shallow tubewell in the district of Hooghly.

1.7.5. Banks
In modern days the importance of innovative credit policy is unbounded. The modern era is the
era of globalization. If the banking system remains unorganized, it does not ensure right direction
towards the globalization. No country can prosper in commerce and industry without having
congenial and organized banking environment.

Table-1.7.5. Information about Banks (as at the end of June 2009)

Year
2009
1991

District

Particulars
Number of Offices
Average Population per Bank Office (in thousands)
Number of Offices
Average Population per Bank Office (in thousands)

Hooghly
294
19
238
18

West Bengal
5033
18
4212
16

Source: Economic Review, 2009-10

Bank encourages investment, savings and crop loan which increase productivity. As a result the
standard of living increases. Side by side, the importance of rural economy and its influence in
Indian banking system cannot be ignored. Since the nationalization of banking system deals with
38

its socio-economic perspective the purpose of Indian banking system was to reach the maximum
possible extent.

From table-1.7.5, it is being seen that the number of bank offices and also the population per
bank office increase simultaneously in the district of Hooghly. We have seen that the population
per bank office in the district of Hooghly was 18 thousand in 1991 and it increases to 19
thousand in 2009. The average number of population per bank in the district of Hooghly is
higher than that of the state.

The primary agricultural co-operative credit society is the main source of short term credit to the
farmers and poor section of the villages. These societies mainly supply the members the shortterm productive credit facility which helps to purchase fertilizers, seeds, pesticides etc. The
number of societies and also the number of members of the societies are being continuously
increased. In 2002-03 the number of societies was 1207 and it increases to 1290 in 2006-07. The
number of members was 353333 in 2002-03 and it increases to 392316 in 2006-07 (District
Statistical Hand Book, Hooghly, 2007).

1.8. Conclusion
In this chapter, we have explained the concept of crop insurance scheme, its rationale,
importance and its objectives. We have laid down different objectives of the NAIS and the
background behind the introduction of it into agriculture. We have pointed out the crops which
are included under the NAIS, their premium rate, loan sanctioning period and claim or indemnity
ratio of the Central and State Government. We have also explained in brief the different activities
of NAIS in Indian agriculture. We have also explained the West Bengal crop insurance system
and its different activities in the State agriculture. From the analysis of crop insurance system of
State and Country, it is observed that the loanee farmers are compulsorily insured and crop
insurance policy is a subsidized policy of the Central Government. In this chapter, we have also
pointed out the needs behind the study of crop insurance and also the objectives of our research
study.
39