Jammu Kashmir Govt To Launch Fresh Bids Amid Crop Insurance Demand By Apple Farmers

Srinagar: Amid growing demand for crop insurance for apples, Jammu and Kashmir government is launching fresh tenders for implementing the Restructured Weather Based Crop Insurance Scheme (RWBCIS) as the two bidders approved last year were disapproved after demanding high premium.

Last year, the agriculture department had accepted bids from Agriculture Insurance Company of India and Tata AIG General Insurance for implementing RWBCIS to bring apple and saffron crops in Kashmir valley, mango and litchi in Jammu division under insurance cover.

“The selected insurance companies were asking for more than 30 percent premium which was against the Government of India guidelines. This premium rate had huge financial implications of around Rs 950 crore which was rejected by the UT finance department. So, it asked to go for fresh tendering. We are going for fresh tendering now,” Sartaj Shah, Director Agriculture Kashmir told ETV Bharat.

A Kashmiri fruit grower sits beside freshly harvested apples laid out in an orchard before sorting and packing them for supply in Srinagar (IANS)

Shah said that the GoI is also revising the guidelines for crop insurance, so we had to revise the tenders and in the coming days their department will launch fresh tenders.

Minister for Agriculture Javaid Ahmad Dar said that bidding for the crop insurance scheme will open on June 1, and the government will complete the process within a month or two. "We are hopeful that the crop insurance scheme will be implemented this year. The government has also kept budgetary provisions for the scheme," Dar said.

The minister said that until the scheme is implemented, the government will provide relief to affected farmers as per the State Disaster Relief Fund (SDRF).

Trucks laden with apples at Asia’s second-largest fruit mandi in Sopore (IANS)

According to the insurance evaluators, if the premium goes above 30 percent, then as per the GoI guidelines, the state has to bear that premium cost. The premium has three components; one paid by farmers, which is 5 percent, second is the state share and third is the GoI share.

When the premium rate is above 30 percent, then the state has to share that part. In the J & K case, evaluators said the cost was over Rs 1000 which was rejected by the finance department, the evaluators said.

Demands for crop insurance by apple growers have intensified in the Kashmir valley as climate change has hit the crop production. Lately, hailstorms have become a cause of concern for apple growers. From May 6 to May 30, the Indian Meteorological Department recorded seven incidents where hailstorms hit apple orchards in Kashmir, spanning from the apple belt of Sopore to Shopian. "We face weather based losses every year, but we get no insurance cover or any compensation from the government," Muhammad Shafi, an apple orchardist from Shopian, said.

Economists and fruit traders say apple industry contributes over 7% to Jammu and Kashmir's Gross Domestic Product (GDP). With production ranging between 20 to 25 lakh metric tonnes, it generates Rs 10,000 crore in revenue and provides livelihood to 35 lakh persons during the season.

A farmer sits beside the fallen apples at a flood-hit orchard at Trich in Pulwama district (IANS)

Kashmir apples make up 78% of India’s total apple production. This production will further increase as farmers are converting agricultural land into apple orchards. According to the Economic Survey of 2024-2025 of the Jammu and Kashmir government, area under major horticulture crops has increased from 3.42 lakh hectares in 2021-22 to 3.44 lakh hectares in 2024-25.

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