Revenue Insurance Scheme for Plantation Crops
(Ministry of Commerce and Industry)
Key features of the Scheme
Key features of the scheme
- Revenue Insurance Scheme for Plantation Crops (RISPC) is an insurance scheme available only to plantation crops, for which insurance can no longer be availed from PMFBY (Prime Minister Fasal Bima Yojana).
- The scheme has been launched to protect growers of tea, coffee, rubber, cardamom and tobacco by the Ministry of Commerce and Industry.
- It is improved form of the Price Stabilization Fund (PSF) Scheme, 2003 which was closed 2013.
(Note: there is another scheme with same name i.e. Price Stabilization Fund (PSF) Scheme under the Ministry of Consumes Affairs, Food and Public Distribution which was launched in 2014-15.)
Launched Year and duration
- It was launched in 2016 and it is implemented on pilot basis in 7 states
- The duration of the pilot scheme shall be one crop cycle commencing from the year 2016-17 which may spread over 2 years.
- In Feb. 2017, the scheme was approved for extension to other districts also.
- Farmers suffer from the adverse weather conditions and fluctuating prices. Thus, to protect the interests of the farmers, the scheme was launched.
- The scheme is compulsory for growers registered with the respective Commodity Boards (CBs).
It is implemented by the Commodity Boards through selected insurance companies.
- Farmers having 10 ha. or less landholding can be benefitted.
- The scheme will be applicable to mature standing crops only.
The scheme protects the growers from the twin risks of weather and price arising:
- Risk of weather: from yield loss due to adverse weather parameters (drought, dry spells, flood, hail storm), diseases, pest attacks etc.
- Risk of price arising: from income loss caused by fall in international/domestic below the average price of last 5 years excluding the current year.
Losses arising out of war and nuclear risk, malicious damage and other preventable risks are excluded.
Approach of the Scheme
The scheme will operate on the principle of ‘Area Approach’ and Commodity Board in consultation with the concerned State Government shall designate an area as Insurance Unit (IU), which can be a village panchayat or any other equivalent unit.
The rate of Insurance Premium payable by the GOI (through commodity Boards), State Governments and Growers in the ratio of 75:15:10.