Chhattisgarh government had decided to introduce the weather based crop insurance scheme across the state. The department of agriculture had issued to this effect to cover all the 27 districts in the state under the insurance scheme.

The state government had shortlisted seven insurance companies - both public and private authorized by the Government of India-to implement the scheme.

The officials said that the agriculture department would pay the premium from the budget allocation it had received for the financial year 2014-15. The scheme is mandatory for the indebted farmers in the notified area for the crops while optional for those farmers who have not taken loan.Under the scheme, 50 percent of the premium would be paid by the farmers while the remaining 50 percent would be shared by the Central and state governments in equal share. The state government had appealed to the farmers to take advantage of the scheme and insure the crop.

Experts however cautioned the authorities and said it should be ensured that the farmers bearing the loss were given relief. "There had been standard norm and the rain measuring equipment had been fixed to cover the area in 10 km periphery that was not practical," agriculture expert Virendra Pandey said.

Based on the observation in 10 km area, the companies had been fixing the insurance cover that had resulted in making the real beneficiaries ineligible.

"If it rains heavy in one village and drought prevails in neighbouring village, the company will make general observation as good rainfall and avoid paying loss to the affected village," Pandey explained.The agriculture officials however contented experts' view and said the drawbacks in the scheme had been addressed.

"The insurance companies have been asked to install the rainfall monitoring equipment in the village level of the district it has been assigned to get the exact picture," a senior official in the department said.

Moreover, the revenue department besides other departments monitoring rainfall has its own resources to record rainfall, he said, adding that the authorities will compile and compare figures from all quarters before coming to conclusion about short or excess rains.

Source - http://www.business-standard.com/