State steps in to insure?
Yesterday, I came across an interesting news article titled: 'Farmers to get weather, crop insurance from state insurers'. Click here for the complete article.
Weather Insurance has been a very important topic in research circles and we at CMF have a dedicated site that gives lot more detail on the projects that CMF is currently engaged in pertaining to weather and rainfall insurance. Here is the link for the site.
It is interesting to note that the move to allow state insurers to provide weather and crop insurance now comes as the fears of drought loom large. One may tend to be cynical in asking "Has a drought never taken place before this?", however, this is a welcome sign. I still feel though that one must take into account many other factors when it comes to giving weather insurance to the farmers: it would be great to understand the extent of their needs rather than providing them yet another financial product. The aforementioned move has been targeted at non-loanee farmers who also remain unaware of such schemes.
The statement by an official, "we will support any initiative, only agents of the government should be allowed to sell the insurance", does hint at a sign of mistrust upon private parties or are they being cautious? Interesting times ahead in the realm of weather and crop insurance, hoping that the farmers benefit in the long run ..