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K.V. Kurmanath

Hyderabad, Dec. 27 Even as Agriculture Insurance Company (AIC) launches an insurance policy covering bio-fuel plants, the Andhra Pradesh Government has suggested to the seed sellers to pay premium on behalf of the farmers.

The Minister for Agriculture, Mr N. Raghuveera Reddy, made this suggestion to prominent seed suppliers who are into selling jatropha and pongamia seeds.

“If they pay the premium, it will encourage farmers to increase bio-diesel acreage. So, the Government suggested payment,” Mr N. Raghuveera Reddy told Business Line.

He asked the officials to have a meeting with the private entrepreneurs involved in bio-fuel seed production and distribution to study the feasibility.

The AIC policy also covers polanga, neem and simarouba. It offers a cover against losses suffered by the farmers in respect of cost of inputs on account of natural calamities.

The AIC is promoted by the General Insurance Company and Nabard (National Bank for Agriculture and Rural Development.)

The cover also includes losses due to ‘non-preventable risks’ such as fire, lightening, heavy and high-speed winds, storm, hailstorm, cyclones, rains and floods.

The innovative product provides with a long coverage, spanning up to 50 years. While it is 1-25 years in the case of jatropha, the cover for pongamia (karanja or kanuga), neem and mahua is put at 1-50 years.

The sum insured is based on the cost of inputs that will go into one acre of each plantation crop. The rate of premium ranges from 1-2 per cent for basic risks and an additional 0.50-1 per cent for cover against losses due to drought and prolonged dry spell.

More Stories on : Non-conventional Energy | General Insurance | Seeds | Andhra Pradesh

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