1. National Conference on Crop Insurance (17 th & 18 th September 2014) 1 Farmer credit and Department of Agriculture Haryana

2. HARYANA AT A GLANCE The State of Haryana came into existence on 1 st November, 1966.  Geographical Area (GA)4.42 m ha (1.4% of India)  Cultivable Area (CA)3.68 m ha (83.2% of GA)  Net Area3.51 m ha (95.4% of CA) _____________________________________________________  Gross Cropped Area6.351 m ha  Cropping Intensity181% _____________________________________________________  Irrigated Area 3.102 m ha (84 %)  Canal Irrigation 1.318 m Ha (42.5%)  Groundwater Irrigation 1.784 m Ha (57.5%)  Under-ground Water 54 % brackish _____________________________________________________  Farming Families16.17 lac (2011 Census)  Marginal Farmers7.78 lac (48.1%) (own 3.61 lac ha – 9.9%)  Small Farmers 3.15 lac (19.5%) (own 4.63 lac ha – 12.8%)  Others 5.24 lac (32.4%) (own 28.21 lac ha – 77.3%) The State of Haryana came into existence on 1 st November, 1966.  Geographical Area (GA)4.42 m ha (1.4% of India)  Cultivable Area (CA)3.68 m ha (83.2% of GA)  Net Area3.51 m ha (95.4% of CA) _____________________________________________________  Gross Cropped Area6.351 m ha  Cropping Intensity181% _____________________________________________________  Irrigated Area 3.102 m ha (84 %)  Canal Irrigation 1.318 m Ha (42.5%)  Groundwater Irrigation 1.784 m Ha (57.5%)  Under-ground Water 54 % brackish _____________________________________________________  Farming Families16.17 lac (2011 Census)  Marginal Farmers7.78 lac (48.1%) (own 3.61 lac ha – 9.9%)  Small Farmers 3.15 lac (19.5%) (own 4.63 lac ha – 12.8%)  Others 5.24 lac (32.4%) (own 28.21 lac ha – 77.3%) 2 2

3. Farmer Credit Year wise flow of credit for agriculture and allied sectors from the year 2008-09 to 2013-14 Rs. In Crore 3 Agency2008-092009-102010-112011-122012-132013-14 Coop. Banks4439.865484.546420.157844.418872.298553.77 RRBs1471.251936.002400.263228.493932.074509.51 Commercial Banks 7338.694429.0017116.0722339.3325133.4830078.50 Other Agencies 951.42350.46388.02417.15328.56188.62 Total14201.2222200.0026324.5033829.3838266.4043330.40

4. National Agriculture Insurance Scheme (NAIS) (Discontinued from Kharif 2013) Modified National Agriculture Insurance Scheme (MNAIS) Weather Based Crop Insurance Scheme (WBCIS) MNAIS & WBCIS are covered under NCIP 4 Crop Insurance Schemes

5. NAIS was started during Kharif 2004 Crops covered Cotton, Bajra, Maize and Arhar during Kharif season and Gram, Barley and Mustard during Rabi season. Block was a unit for the yield estimation to settle claims. Later on the cluster of villages (half a block)was started for the yield estimation to settle the claims. 10% subsidy on premium was equally shared by State and Centre for the small and marginal farmers. Claims were given to the farmers on the basis of guaranteed yield. All liabilities above the premium were equally shared by the State and Central Government. Agriculture Insurance Company of India Ltd. was the implementing agency. Director General was the controlling of the scheme. This scheme discontinued from Kharif, 2013 due to less coverage of farmers under the scheme. 5 National Agriculture Insurance Scheme (NAIS)

6. Performance of NAIS 6 A total no. of 6,35,751 farmers covered under the scheme since Kharif 2004 to Rabi 2012-13 which was very less. Total premium collected was Rs. 2412.12 lac. Total claims were Rs.4367.97 lac. All claims were given by the State and Centre Govt. over and above the premium. Therefore, the liability of claims was huge.

7. NAIS Discontinued Reasons:- Very less number of farmers covered. The scheme was not at the village level as a unit. Claims above the premium were equally shared by State Government and GOI. Hence more burden of financial liabilities on Govt. Premium subsidy was only for small and marginal farmers (5:5% state and center). 7

8. It is a modified scheme of NAIS and is referred as Modified National Agriculture Insurance Scheme (MNAIS). Modified National Agriculture Insurance Scheme is a centrally sponsored scheme which is a fine tune of National Agriculture Insurance Scheme (NAIS ) on 50:50 sharing basis as per instructions and guidelines issued by Government of India, Ministry of Agriculture, Department of Agriculture and Cooperation to implement Modified National Agriculture Insurance Scheme. The unit is village/panchyat level for settlement of claims. The scheme was for the first time started in the State during Kharif 2011 on pilot basis in Karnal and Kaithal districts for Paddy crop. Presently, MAINS is being implemented in 4 districts namely Karnal, Kaithal, Rohtak and Jind district for Wheat and Paddy crops. All the claims are given by the implementing agencies. 2,14,062 farmers have been covered up to Kharif 2013. Rs. 5,798.23 lakh Gross premium collected up to Kharif 2013 and claim paid Rs. 4,695.48 lakh. 8 MNAIS

9. Actuarial premiums are paid for insuring crops and hence claims liability will be on insurer. Unit area of insurance for major crops is village/village panchayat. Four Crop Cutting Experiments are conducted in each village/village Panchayat. Crop Cutting Experiments are being conducted through out source. Open bids are called from implementing agencies both AIC and other private agencies. Bids are opened in the meeting under the chairmanship of PS Agriculture. One district is given to one company for implementation and next district is given to company which quote next lowest rates but at the lowest rates quoted. Uniform seasonality norms are applicable for both loanee and non-loanee farmers as decided in the meeting. More proficient basis for calculation of threshold yield (average yield of last seven years excluding up to two years of declared natural calamity) will be applicable. Indemnity level is 90%, 80% &70% corresponding to Low, Medium & High Risks Areas. Yield losses of the crops are covered as per the norms of the scheme. 9 MAIN FEATURES OF MNAIS

10. Progress of MNAIS Scheme Rs. In Lac 10 YearFarmers covered Farmers Share of Premium State Share of Premium Centre Share of Premium Total Premium collected Claim Distributed Kharif 2011 36613691.76230.58 1152.923238.00 Rabi 2011-12 45157330.10-- 39.06 Kharif 2012 449081075.56542.69 2160.94667.69 Rabi 2012-13 43218317.12-- 414.33 Kharif 2013 441661006.71415.22 1837.15336.40 Total 2140623421.251188.49 5798.234695.48

11. The Weather Based Crop Insurance Scheme (WBCIS) was for the first time started in the State during Rabi 2009-10 on pilot basis. Presently, WBCIS is being implemented in 27 blocks of the 12 districts in the State. Kharif 2013, Paddy. Wheat and Paddy crop are covered. This scheme is based on several weather parameters like- deficit rainfall, excess rainfall, temperature and dry days. Paddy – Excessive/deficient rainfall and dry days Wheat – Excessive temperature & rainfall The scheme is not based on yield parameters. 11 WBCIS

12. All farmers (both loanee and non-loanee farmers) are eligible for coverage. However, the scheme is compulsory for loanee (having sanctioned credit limits from banks / PACS) and optional for non loanee farmers. The Scheme is being operated on the principle of “Area Approach” basis. “Reference Unit Areas” are linked to specific “Reference Weather Stations”. Risk period i.e. insurance period is from “sowing period” to “Maturity” of the crop. The specific “Adverse Weather Incidence” with its timing / duration applicable to a particular crop is notified by the SLCCCI. More than 70% subsidy on premium is being provided to all categories of farmers which is equally shared by GOI & State Govt. Rest of the premium is given by farmers. The sum insured is broadly equivalent to the cost of cultivation and is pre-declared and notified in the Notification. Claims become payable only on occurrence of adverse weather incidence. Certain GOI approved companies can participate under the scheme. 12 MAIN FEATURES (WBCIS)

13. Progress of WBCIS Rs. in lac 13 YearFarmers covered Farmers Share of Premium State Share of Premium Centre Share of Premium Total Premium collected Claim Distributed Rabi 2009-10261035.4714.77 65.02157.98 Kharif 20105526126.1031.51 189.12226.52 Rabi 2010-11653998.3657.38 213.12554.61 Kharif 201113494195.58293.35 782.28190.62 Rabi 2011-1233926264.14572.26 1408.66626.90 Kharif 201261399598.46810.46 2219.38462.54 Rabi 2012-1364583472.401024.37 2521.151740.78 Kharif 201378052999.521499.08 3997.681274.64 Total 2661292790.034303.18 11396.415234.59

14. ISSUES & SUGGESTIONS MNAIS a better scheme but premium rates are high. CCEs under MNAIS have increased manifold. GOI may share the 50 % financial burden on CCEs. Any new technology for the yield estimates by remote sensing be given. WBCIS is a better scheme but premium rates are again high. Monitoring of AWSs be strengthened by involving IMD. Any Crop Insurance Scheme may be prepared by GOI where the premium rate of farmer and share of State & Central Govt. jointly be 50:50 ( i.e. farmer : State + Center) The payout under any insurance scheme be at least 50 percent of the total premium collected by the companies from Govt. and farmers. No claim bonus should be given to the farmers in every season. The compulsion on the loanee farmers should be relaxed and flexible. Representative of farmer groups/organizations/associations etc. should be involved in formulating the crop Insurance Schemes. Any new scheme may not be launched by GOI in between the mid plan prior to suggestions from the State Governments. 14

15. Thank You website: agriharyana.nic.in e-mail : agriharyana2009@gmail.com agriculture@hry.nic.in 15