Fortunately, the government has taken
a whisper of a logical step in this year’s budget by announcing a comprehensive insurance scheme, the compensation of which will be based on weather derivatives, rather than on making tedious calculations of crop damage. But aren’t derivatives extremely miniscule currently? M. Parshad, CMD of Agricultural Insurance Company, which has been asked to carry out the scheme on a pilot basis in few states, accepted to B&E, “At the moment, weather derivatives take up only a very small fraction of the rural insurance market, but since weather derivative contracts are easier and much faster to settle, we expect it to change.” Whatever it is, it’s a great start. But the government should now focus on making such schemes compulsorily linked to all crop loans and to attach maximum number of farmers, and even other firms whose fortunes depend on weather, to it. Really, why can’t the thumb rule for Indian farmers one day change from ‘No Rain, No Gain’ to ‘No Rain, No Pain’
For Complete IIPM Article, Click on IIPM Article
a whisper of a logical step in this year’s budget by announcing a comprehensive insurance scheme, the compensation of which will be based on weather derivatives, rather than on making tedious calculations of crop damage. But aren’t derivatives extremely miniscule currently? M. Parshad, CMD of Agricultural Insurance Company, which has been asked to carry out the scheme on a pilot basis in few states, accepted to B&E, “At the moment, weather derivatives take up only a very small fraction of the rural insurance market, but since weather derivative contracts are easier and much faster to settle, we expect it to change.” Whatever it is, it’s a great start. But the government should now focus on making such schemes compulsorily linked to all crop loans and to attach maximum number of farmers, and even other firms whose fortunes depend on weather, to it. Really, why can’t the thumb rule for Indian farmers one day change from ‘No Rain, No Gain’ to ‘No Rain, No Pain’For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Read More Article:-
Melting glaciers
Mercury
Slow and steady...
High potential real estate sector
Business Park
An avant-garde Architect’s AlcazarSuccessfully supplemented
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Read More Article:-
Melting glaciers
Mercury
Slow and steady...
High potential real estate sector
Business Park
An avant-garde Architect’s AlcazarSuccessfully supplemented
No comments:
Post a Comment