INDIA PROPOSES WEATHER INSURANCE SCHEME FOR COFFEE GROWERS

India’s Cabinet Committee on Economic Affairs is set to rule on a proposed insurance scheme for the country’s coffee growers. Under the proposal, coffee growers likely to be affected by adverse rainfall levels would be offered insurance policies. The coverage is provided in three categories with the maximum amount of insured per hectare for robusta and arabica coffee types being Rp20,000 and Rp30,000 respectively. If approved, the scheme would be implemented at an annual expenditure of Rp23 crore by the Coffee Board. The premium would be shared by the growers and the government on a 50:50 ratio, subject to a limit per hectare of Rp2,000 for robusta varieties and Rp2,500 for arabatica. The weather insurance proposal comes at the same time as the suggestion of a futures market for India’s plantation growers. The proposal from the Task Force for Plantation Sector suggests forming a co-operative among growers to enable them to protect themselves from price volatility through futures trading. The task force also suggests strengthening the current insurance scheme for plantation growers with the government subsidising any premium increases.