The project seeks to help farmers undertake optimal agricultural activities and generate sustainable income by minimizing the weather shocks they face through financial and technological risk management measures. The program involves the installation of Automated Weather Stations (AWS) to collect and disseminate weather data and facilitate the settlement of weather insurance claims.
It will implement weather and hybrid insurance products to address the critical risk-management needs of the farmers. The project will also provide weather forecasts and warnings to help farmers take proactive steps to minimize possible crop loses due to adverse weather conditions. Eventually, the project aims to raise awareness about agriculture risk and insurance solutions amongst farmers by training and equipping various intermediary organizations working in the region.
The project targets farmers and their families in the regions of Howrah and Kamrup, covering about 250 000 hectares and offering coverage to more 50 000 farmers over the 2-year project period. Most of the farmers are involved in small-scale agriculture (< 1 hectare of land) and traditionally grow potatoes and rice paddy.
Weather Risk Management Services Ltd (WRMS) has played a pioneering role in developing the alternative agriculture insurance market in India to protect Indian farmers. This work involves developing and implementing a weather insurance contract, getting regulatory approval, building institutional capacities, linking Indian insurers with the international reinsurance market, preparing commodity exchanges for weather trading, advising the government on insurance subsidy, and developing low-cost technology to bring down administration expenses. The efforts of WRMS has enabled over 250,000 farmers across the country to access coverage under its various agriculture risk management services.