Editorial

Crop Insurance Scheme for Kashmir farmers is long overdue

27 May 2023

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Kashmir’s farmers are suffering for the varagies of weather and general climate change for long now. Every year parts of the region are struck by extreme weather conditions like hailstorm and farmers end up in collosal loss. The recent hailstorms witnessed in parts of Kulgam, Anantnag, Kupwara, Baramulla have dented the fruit season sentiment among farmers.

The main loss is incurred by apple farmers, many of whom have to borrow money for buying costly agro chemicals, fertilizers and other equipment. Under these circumstances, implemetation of the crop insurance scheme is crucial for Kashmiri farmers. It is inconceivable how the scheme has not been implemented despite an official announcement that its implementation has been approved. There is no reason why the scheme is running successfully in parts of Jammu region, and why the procedural issues cannot be resolved with insurance companies.

The fact of the matter is that Kashmir’s Rs 13000 crore apple industry can’t unlock it’s full potential without risk mitigation. Kashmir is prone to unpredictable weather conditions, including hailstorms, heavy rains, and sudden temperature fluctuations. These factors pose significant risks to agricultural production and can lead to crop losses. Crop insurance could provide a safety net for farmers by compensating them for the financial losses incurred due to these unforeseen events. It could help mitigate the risks associated with climate variability and extreme weather events.

Agriculture is the primary source of livelihood for many farmers in Kashmir. Crop losses can have a devastating impact on their income and financial stability. Crop insurance could also provide a measure of financial security by ensuring that farmers receive compensation for the losses they suffer. It could help them recover and rebuild their farms, ensuring their continued participation in agriculture.

The availability of crop insurance could also encourages farmers of the valley to invest in modern agricultural practices and adopt innovative techniques. When farmers have a safety net against potential losses, they are more willing to take calculated risks and experiment with new farming methods. This can lead to increased productivity, better resilience to climate change, and the adoption of sustainable agricultural practices, something J&K government is itself keen to promote.

What is also important itls that crop insurance can improve the creditworthiness of farmers. With insurance coverage, farmers are more likely to be eligible for loans and credit facilities from financial institutions. Lenders feel more confident in providing credit to farmers who have protection against crop losses, as it reduces the risk of default. Under the current circumstances, a lot of farmers in Kashmir, who have taken KCC loans, are unable to repay. Similarly, access to credit can enable farmers to invest in better inputs, equipment, and technology, ultimately improving their farming practices. That is being constrained now due to income uncertainty in Kashmir.

It is now common knowledge that climate change is affecting agricultural systems worldwide, including in Kashmir. By offering crop insurance, farmers could be encouraged to implement climate resistant crops. They can diversify their crops, adopt suitable cropping patterns, and invest in climate-resilient technologies. The insurance scheme could also provide a safety net during the transition to more sustainable and climate-smart agricultural practices.

It is time to walk the walk, and make crop insurance work for farmers in Kashmir.