India - Drought in 4th straight year saw huge cut in productivity
Farmers across the state have made insuranceclaims worth Rs 862 crore against the crop losses suffered during the rabi season that ended in March this year. Severe drought last year damaged large tracts of crops. This payout will be the highest since 1999. Officials said the number, though the highest in so many years, is just the tip of the iceberg of losses as the indemnity level for the scheme was 60%, which means farmers who incur losses in more than 60% of the area will only be paid up to 60%. A small section of farmers was not covered under the scheme, so their losses will be unaccounted for.The amount of claims should only be treated as an indicator of the severity of distress the agriculture sector is in due to drought, said the official. Farmers across Maharashtra have made insurance claims worth Rs 862 crore against crop losses suffered during the rabi season. This payout will be the highest since 1999. The insurance payout for the kharif season in 2015-16 of Rs 4,208 crore was the highest since 1999. For the rabi season of 2015 16, a total of 34.26 lakh farmers had opted for insurance of crops on a total area of 25.25 lakh hectares, insuring crops worth Rs 2,858 crore. However, total claims worth Rs 862 crore have been approved by the centrally appointed agricul tural insurance company. Rs 400 crore each will be shared by the state and the Central government towards the payout, while Rs 62 crore is the premium paid by the farmers. The National Agriculture Insurance Scheme (NAIS) is a Central scheme under which premium is fixed depending on the crop that is being insured. Only a small percentage of the total premium is paid by the farmer; the remaining is pooled in by the state and the Centre. "The claims against losses for the last season were exceptionally high as the agriculture sector was going through a low period due to the fourth consecutive year of drought," said a senior official. Due to the severe drought situation in the state, there has been a reduction in both the area under cultivation during the rabi season and agricultural productivity. A total of 62.44 lakh hectares were available for cultivation this year. But data made available by the agriculture department shows only 77.49% of the total land was cultivated during the rabi season. Overall production of all crops came down by 17%, while per hectare productivity reduced by 25%. In 2015-16, almost 70% of the state was drought-affected, which includes over 28,000 villages and 90 lakh of the 1.36 crore farmers in the state. Source - http://timesofindia.indiatimes.com