The working group on risk management in
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| 1.4. Chapter Plan Chapter 2 of the report discusses various risks in agriculture and the formal and informal mechanisms in dealing with these risks. Chapter 3 begins with an overview of climatic risks and the status of early warning systems for natural disasters. Chapter 4 reviews and provides specific recommendations in the areas of crop insurance, farm income insurance, livestock insurance and other insurance products. National Agricultural Insurance Scheme (NAIS) has been reviewed with the purpose of making it more effective and affordable to the farmer during XI Plan period and beyond. The chapter also deals with risk transfer mechanism, actuarial regime & public-private partnership in crop insurance. The chapter also works out the government’s financial implications for the XI Plan Period. Chapter 5 explores the potential applications of remote sensing technology, insurance delivery services and the need for having a nationally consistent database for agriculture insurance. Chapter 6 looks at existing price support measures like Minimum Support Prices (MSP), Market Intervention Scheme (MIS), Price Stabilization Fund (PSF), Credit Risk Fund (CRF) and makes recommendations for improving these mechanisms. Chapter 7, while discussing the emerging commodity markets in the country, makes comprehensive suggestions in making these markets as effective tool for price risk management in the country. Chapter 8 espouses contract farming, as an important price risk mitigation strategy, while arguing fora regulatory & developmental regime for ensuring a level playing field for the farmers. Chapter makes recommendation for setting up a Centre for Risk Management in Agriculture for capacity building and research to develop an inventory of risk management tools in the agriculture sector. |