<p>The agriculture sector is subjected to high levels of risk and uncertainties. Crop insurance, market risk management and crop diversification, etc. have been found as effective risk management tools to provide security to the farming community. In Himachal Pradesh, some areas like Theog and Shogi in Shimla; Saproon, Chail and Kandaghat in Solan; Bajaura and Katrain in Kullu; and Pattan valley in Lahaul Spiti had started the process of diversification towards fruits and vegetable crops in 1960s which got momentum during the late-1990s. The state has recorded an increase of 80 per cent in fruit production against the 14 per cent rise in area during 1995–96 to 2003–04. Similarly, the vegetables, presently contributing about Rs 400 crore to the state's annual GDP, have witnessed an increase of 96 per cent in production and 66 per cent in area over the same period.</p><p>The state has provided insurance cover to the crops of maize, paddy, wheat, barley and potato. The state Government has introduced “Rashtriya Krishi Bima Yojana” from <italic>rabi</italic> 1999–00 season. The scheme is optional for farmers who have not raised loans. The farmers were insured against these crops at nominal rates of Rs 9,205 (paddy), Rs 6,300 (maize) and Rs 28,255 (potato) per ha. Premium on maize and paddy crops was kept at 2.50 per cent and 3.25 per cent on potato. Market Intervention Scheme(MIS) has been in practice since long, for potatoes since 1972 and for apple fruit since 1981. This scheme has been extended to <italic>kinnow</italic>, oranges, <italic>malta</italic> and <italic>galgal</italic> as well. Besides, the development of market network through 45 regulated markets with multifarious facilities (grading, storing, freezing, processing) functioning under 10 committees, it helps farmers and market functionaries in reducing price risks. Himachal Pradesh Agro Industry Corporation (HPAIC), Himachal Pradesh Horticultural Produce Marketing Corporation (HPMC) and Himachal Pradesh Co-operative Marketing Federation (HIMFED) have been entrusted the responsibility of purchasing the specified produce as per announced support price under MIS as well as in the open market.</p></sec></body></article></article></body></html>

aerr

Agricultural Economics Research Review

0971-3441

Agricultural Economics Research Association

aerr-18-conf-036

ABSTRACTS OF DISSERTATIONS OR ARTICLES

Reducing risk through crop insurance and market risk management techniques

Chauhan

S.K.

Department of Agricultural Economics, CSK HP Agricultural University, Palampur, Himachal Pradesh.

122005

18conference181181

<p>The agriculture sector is subjected to high levels of risk and uncertainties. Crop insurance, market risk management and crop diversification, etc. have been found as effective risk management tools to provide security to the farming community. In Himachal Pradesh, some areas like Theog and Shogi in Shimla; Saproon, Chail and Kandaghat in Solan; Bajaura and Katrain in Kullu; and Pattan valley in Lahaul Spiti had started the process of diversification towards fruits and vegetable crops in 1960s which got momentum during the late-1990s. The state has recorded an increase of 80 per cent in fruit production against the 14 per cent rise in area during 1995–96 to 2003–04. Similarly, the vegetables, presently contributing about Rs 400 crore to the state's annual GDP, have witnessed an increase of 96 per cent in production and 66 per cent in area over the same period.</p><p>The state has provided insurance cover to the crops of maize, paddy, wheat, barley and potato. The state Government has introduced “Rashtriya Krishi Bima Yojana” from <italic>rabi</italic> 1999–00 season. The scheme is optional for farmers who have not raised loans. The farmers were insured against these crops at nominal rates of Rs 9,205 (paddy), Rs 6,300 (maize) and Rs 28,255 (potato) per ha. Premium on maize and paddy crops was kept at 2.50 per cent and 3.25 per cent on potato. Market Intervention Scheme(MIS) has been in practice since long, for potatoes since 1972 and for apple fruit since 1981. This scheme has been extended to <italic>kinnow</italic>, oranges, <italic>malta</italic> and <italic>galgal</italic> as well. Besides, the development of market network through 45 regulated markets with multifarious facilities (grading, storing, freezing, processing) functioning under 10 committees, it helps farmers and market functionaries in reducing price risks. Himachal Pradesh Agro Industry Corporation (HPAIC), Himachal Pradesh Horticultural Produce Marketing Corporation (HPMC) and Himachal Pradesh Co-operative Marketing Federation (HIMFED) have been entrusted the responsibility of purchasing the specified produce as per announced support price under MIS as well as in the open market.</p></sec></body></article></article></body></html>