Arecanut and pepper have now been covered under weather-based crop insurance scheme (WBCIS), among other crops.
The State government issued a notification to this effect on June 13 covering the two crops for the 2016 kharif season.
The scheme automatically covers farmers who availed themselves of crop loans from banks as it was mandatory. Hence they need not apply. As it was voluntary for other farmers, they will have to apply through banks in which they have accounts.
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The last date for applying to be part of the scheme is June 30.
According to the notification, the insured amount and premium for the two crops though were same for Dakshina Kannada and Udupi, they were different in other districts. Hence arecanut and pepper growers in Shivamogga and Uttara Kannada will not be paying the same premium amount like that of their counterparts in Dakshina Kannada and Udupi as the insured amount also is different.
The government has appointed Tata AIG Insurance Company Ltd. for Dakshina Kannada and Udupi as the insurance agent.
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The insured amount for arecanut will be Rs. 1.25 lakh per hectare.
The annual premium fixed was Rs. 12,500. In that, the applicant will have to pay his or her share of Rs. 6,250, which is half of the premium amount. The balance amount of Rs. 6,250 would be borne by the government on equal sharing basis between the Union government and the State government.
The farmer’s share was decided on the basis of total insured amount as it was five per cent of the same. For any crop, the farmer’s share would be 5 per cent of the insured amount of the respective crop.
The premium amount fixed was 10 per cent of the insured amount.
For pepper
The government has fixed Rs. 37,500 as the insured amount per hectare of pepper. The annual premium will be Rs. 3,750. In that the applicant will have to contribute his or her share of half, Rs. 1,875. The balance amount will be borne by the two governments on equal-sharing basis.