The working group on risk management in

10. Wrapping up
In concluding, the Working Group would like to reiterate the basic objective of ensuring that ultimately the risks of Indian agriculture are pooled, shared and transferred to international capital and reinsurance markets through appropriate market-based instruments like reinsurance, catastrophe bonds and alternative risk transfer mechanisms.
The governments in developing countries such as in India whether central or state, cannot bear all losses arising out of risks in agriculture. Their involvement must necessarily stand restricted to enhancing the coping capacities of the farming communities,
institution building, stepping in, in times of catastrophic losses and correcting imbalances to which the agricultural sector is exposed to from time to time on account of its inherent vulnerability.
Accordingly the Working Group has recommended measures for the XI Plan period to strengthen the institutions, systems and mechanisms involved in the mitigation and transfer of agricultural risks, such as:
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Transition of the Crop Insurance Scheme to an actuarial regime supported by upfront subsidy in premium with insurers taking full responsibility for claims, save catastrophe claims.
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Strengthening the weather insurance system through technological developments like electronic weather stations and remote sensing technology.
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Increase in penetration of livestock insurance considering its future potential contribution to rural income growth.
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To introduce farm income insurance scheme to protect farmers incomes more comprehensively.
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To introduce price stabilization fund and credit risks management fund to insulate farmers from price volatility.

To manage environmental risks ariring from climate variability and change through early warning systems, capacity building of farmers and institutional interventions.
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To develop institutions like commodity futures, markets, contract farming,
agricultural warehousing infrastructure, etc. to mitigate price risks.
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Recognizing the need to manage the multiple risks in an effective manner a centre for integrated risk management in Agriculture is proposed to be established in public private partnership.
It is our belief that government initiatives on these lines to strengthen the agricultural sector’s risk management capabilities will lead to ushering in a sustainable and remunerative agriculture during the XI Plan Period.