Review of Agricultural Insurance In Punjab State of India

The present study looks into the genesis of agricultural insurance in India macroscopically and examines various agricultural schemes operating in the state of Punjab microscopically. The design for the study was descriptive research. The focus of the review was on the functional agricultural insurance schemes in Punjab state microscopically and macroscopically in the country. India has administered crop insurance scheme since 1972 of which all the variants of the scheme introduced from time to time had various flaws. Nevertheless India is not alone where public crop insurance has not been successful. In both developed and developing countries such insurance schemes have incurred losses without offering an effective product. The major role player in the public sector companies offering crop insurance is Agricultural Insurance Company (AIC). The private role players are IFFCO Tokio General Insurance Company Ltd, ICICI Lombard Insurance Company Ltd. The major insurance running in the country is NAIS but was not Punjab state since the paddy –wheat crops grown in the state are less risky crop in the wake of assured irrigation and high input agriculture. Weather based insurance products have got a good scope in the state to act as a tool of risk mitigation. The post green revolution era of Punjab State needs to address the challenge of diversification. The agriculture insurance can act as a motivation for the farmers of Punjab to go for diversification by setting themselves free from the risks involved and the loss in income which they shall face. Crop insurance needs to be strongly taken up at the policy level; with well defined risk to Punjab’s agriculture, well devised products for these risks in current scenario.