Risk management support for coffee growers to be implemented

New Delhi, Mar 22 (UNI) To help small coffee growers having plantations upto 10 hectares, the government today approved implementation of Weather (Rainfall) Insurance as a Risk Management Support for Coffee Growers by the Coffee Board.

This would entail an expenditure of Rs 22.87 crore per annum and would provide an effective risk management aid to those coffee growers likely to be impacted by adverse rainfall incidence.

Finance Minister P Chidambaram, briefing reporters after the Cabinet Committee on Economic Affairs (CCEA) meeting, said the maximum sum insured per hectare for Robusta and Arabica is at Rs 20,000 and Rs30,000 respectively.

The premium will be shared on 50:50 basis between the growers/permanent plantation workers and the Government, The 50% subsidy on the premium amount would be subject to a ceiling of Rs 2000/- for Robusta and Rs 2500/- for Arabica per hectare.

Authorisation to the Coffee Board to approve and implement any further modifications in the Scheme, in consultation with the Agricultural Insurance Co Ltd (AICL), subject to the condition that all such modifications would be in consonance with the basic objectives of the scheme and within the available resources of the scheme, the Finance Minister said.

The CCEA also approved modifications in the Personal Accident Insurance (PAI) Scheme for plantation workers.

There would be extension of the PAI Scheme to cover permanent plantation workers together with the growers in the sectors of Tea, Coffee, Rubber&Tobacco. The scheme covers growers having plantations up to four hectares area only.

There would be enhancement of insurance cover from Rs 25,000 to Rs 1,00,000 for both plantation growers and permanent workers deployed on such plantations in case of death and permanent disability under the PAI Scheme. The premium is to be shared on 50:50 basis between the beneficiary and Price Stabilisation Fund Trust (PSFT).

The financial implication of this approval covering 12.77 lakh growers and 51.08 lakh workers at the rate of 50% premium would be Rs 4.47 crore, Mr Chidambaram said.

UNI