• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Harish Damodaran
Phalguna Jandyala

New Delhi May 27 A novel feature of the Centre's proposed new rainfall-based insurance scheme relates to the distribution of the sum insured (maximum payout) over different stages of crop growth and the moisture requirement for each of these stages.

Key stages

Take, for example, soyabean grown in Yavatmal (Maharashtra), which goes through four key stages: Sowing and germination (between June 10 and 30), vegetative phase (July), flowering and pod formation (August), and pod filling and maturity (September-October 15). For each of these stages, there is a minimum amount of rainfall required.

Payout

This minimum trigger (at which the payout starts) is 25 mm over two days during sowing and germination. For every one mm rainfall below the trigger and subject to an exit point of 5 mm (when full payout is given), the payout is fixed at Rs 37.5 per mm per acre. The maximum payment during this stage, thus, works out to Rs 750.

Similarly, there is a trigger of 40 mm for the vegetative as well as flowering stage (with corresponding exit points out 15 mm) and payout rates of Rs 50 and Rs 60 per mm, respectively. The maximum payout in these stages, thus, comes to Rs 1,250 and Rs 1,500 per acre, respectively.

For the pod filling/maturity stage, the trigger, exit and payout rate are 60 mm, 20 mm and Rs 37.5 per mm, translating into a maximum payout of Rs 1,500 per acre.

The total sum insured for all the four stages comes to Rs 5,000 per acre.

The farmers, then, get covered for deficit rainfall not just over the entire season, but also for the main stages of crop growth.

More Stories on : Agriculture | Climate & Weather | General Insurance | Cultivation

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Clouds gather as stage is set for onset of monsoon

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line