The Jammu and Kashmir government has selected two insurance companies to implement crop insurance for cash crops, including apples. The agriculture department accepted bids from Agriculture Insurance Company of India and Tata AIG General Insurance under the Restructured Weather-Based Crop Insurance Scheme.
The scheme will cover apples and saffron in the Kashmir Valley, and mango, litchi, and saffron in the Jammu division. The move follows losses linked to weather events such as heat, hailstorms, rainfall, and snowfall. Apple growers reported losses of Rs 200 crore (US$24 million) last August due to floods, rainfall, and transport disruptions.
According to the Economic Survey 2024–2025, the area under major horticulture crops increased from 342,000 hectares in 2021–22 to 344,000 hectares in 2024–25. Fruit production is projected to reach 3 million metric tons by 2030, up from 2.692 million metric tons last year. Apple production in the Valley is estimated at 2.1 million metric tons annually.
The apple sector contributes over 7% to the region's GDP, with production between 2 and 2.5 million metric tons generating around Rs 10,000 crore (US$1.2 billion) and supporting approximately 35 million people. Kashmir apples account for 78% of India's total apple production.
A senior agriculture department official said the scheme is being finalised and will be implemented this year. Insurance premiums and coverage will vary by district based on crop conditions and risk factors. "The weather-based insurance will be covered as per scientific analysis and survey data of districts where the insured crops are grown. Once we complete these procedures, crop insurance will be started this year," the official said.
The scheme will cover growers from production to post-harvest stages, with contributions from both the government and insurance providers. Chief Minister Omar Abdullah said the programme aims to address climate-related losses. "This scheme will make growers safer, and they will feel relief from the climate-related losses," he said.
Growers have responded positively but are calling for consultation. Zahoor Ahmad Rather of the Apple Federation of Kashmir said insurance should consider growers as individual units due to fragmented landholdings. "For its proper implementation, a grower must be considered as a unit. Consultation must be held with growers before the bureaucrats finalise the policy," he said.
Officials also noted differences in premium rates between conventional and high-density orchards, with discussions ongoing on implementation.
Source: ETV Bharat
