The positive impact of yield-based insurance on paddy crops
Crop insurance is an important enabler in the C-SAFE value chain model. We experimented with WRMS yield based insurance for the paddy crop in Asgaon, Dist Bhandara. The idea was to test simplicity and effectiveness of this innovative insurance product. A total of 143 acres of paddy crop was covered. The construct of the product was on predefined yield mapped out with scientific package of practices, and the shortfall in output is compensated vis-à-vis the predefined yield.
In the kharif season, due to adverse climatic conditions some fields got completely damaged. The result of this experiment is, Mr Vinod Bule, farmer from C SAFE Paddy value chain project, lost his whole 3-acre crop due to flood water. The crop was 55 days old and he had invested Rs 36000 on paddy cultivation, which was totally wasted. Covered under crop insurance, Mr Vinod received insurance payout of the full amount, directly to his bank account within 10 days of the incidence.
Furthermore, other farmers who were covered under insurance and could not achieve the baseline yield because of unfavourable climatic conditions, got an average insurance payout of Rs 2000 per acre.