Srinagar, May 22: Chief executive, J&K Bank Dr Haseeb Drabu Saturday said the commercialization of the agriculture products was important for development of agri-sector in the Valley.
 Speaking at the launching ceremony of the National Agriculture Insurance Scheme for Kahrief 2010 at SKICC here, Drabu cited three reasons namely operational, structural and administrative, for the crop insurance not taking off (as per the plan) in the Valley.
 “Agricultural Insurance Company does not have any office here. The products that are insured under these schemes are not suitable to the Valley,” he added.
 Drabu said: “We have a different kind of climate here. The crops we cultivate in different seasons do not match with those of other states. Hence there is a need to evolve such a scheme as would match our products,” he added.
 He said the absence of the information benchmarks in the state was also a concern. “In their absence we are not able to know the risk patterns,” he said.
 “If these schemes are not designed according to our needs I am afraid they will not work here. There is a need to do ground work to ensure the kind of crop insurances that are needed here,” he said.
 Drabu said: “The agriculture production in J&K is the lowest. We are producing the products only for self consumption and not thinking for their commercialization,” he said.
  “Despite our best efforts we are not able to introduce agricultural credits properly as there are very less takers for the same. Once we will start looking for the commercialization of the yield the credit will automatically increase,” he added.
 Drabu said that there was a need to introduce new techniques and technologies in agriculture.  “The best way to ensure the development of agriculture is to ensure the greater commercialization and credits,” he said. According to Drabu the scheme was covering the yield risk only and the farmers here were facing more of the price risk. “It covers only the yield risk. For past 25 years the yield risk here is 1/10th of the price risk, so the real concern for the farmers is the price risk which is not covered in this scheme,” he said. He stressed the need for having both yield and price risk insurance.

Lastupdate on : Sat, 22 May 2010 21:30:00 Makkah time
Lastupdate on : Sat, 22 May 2010 18:30:00 GMT
Lastupdate on : Sun, 23 May 2010 00:00:00 IST