On Wednesday, the Kerala Cooperative Milk Marketing Federation (Milma) launched an insurance scheme for dairy farmers. This is a first-of-its-kind of cattle insurance plan in the state that offers compensation to dairy farmers for economic loss due to a fall in milk production during the summer.
Muralidharan, a cattle farmer, who is relieved by the scheme, owns seven cows that would normally yield a total of 85 liters a day, earning him a daily sale of around ₹ 3,700.
However, in summer when the temperature rises, the daily yield dips to 65 liters a day causing him a business loss of nearly ₹ 1,000 a day while his feed and other input costs remain constant. Muralidharan, belonging to Palakkad district has registered for this policy launched by Milma.
Muralidharan told, "I am happy to be part of this scheme. Schemes like this are quite motivating for farmers." Another cattle farmer, Benny John said that the yield of his cows has come down from ₹ 900 to ₹ 700 per day during the summer season.
Talking about the insurance scheme, he said, "My expenses towards feed is at ₹ 360 a day. I hope the insurance will help me recover a bit." Unlike crop insurance, farmers do not have to file claims and struggle for payment launched by the Agriculture Insurance Company of India Ltd (AIC).
Under this scheme, the temperature limit is fixed for each district and the payout is done if the temperature exceeds 6, 8, 10, or 25 consecutive days. Then, the farmers will get a compensation of ₹ 140, ₹ 440, ₹ 900, and ₹ 2,000 respectively.
Dr PR Prasidha, State Head AIC of India said, "The claim will be settled automatically and it will be calculated based on weather data. While the temperature will be observed using IMD's satellite data. Farmers need not inform the insurance company."
Though, each insured cattle will be eligible for a maximum cover of ₹2,000 in April and May.
The policy costs ₹ 100 per animal and the Kerala Cooperative Milk Marketing Federation (Milma) bears 50% of the premium cost. Under this policy, around 15,000 cattle are expected to be covered.
