Page 126 - DMGT509_RURAL MARKETING

Unit 6: Rural Marketing Research

Marketing Director: We need at least three months to get the results. Besides we have to locate Notes
interviewers who are well versed in the local dialect as otherwise we will never get the right
answers.
Production Director: We have to keep on hold the new product packaging plan for now.
CEO: Yes but go ahead and select the package quickly. Place the order only as the research
answers start coming to us.



Case Study National Agricultural Insurance Scheme

T he government of India has launched this scheme for the following objectives:

1. To provide insurance coverage and financial support to the farmers in the event of
failure of any of the notified crop as a result of natural calamities, pests and diseases.
2. To encourage the farmers to adopt progressive farming practices, high value inputs
and higher technology in agriculture.
3. To help stabilize farm incomes, particularly in disaster years.
The scheme covers the farmers including those who have taken loans (compulsory) as
well as the others, who have not taken loans (optional). The assured sum extends to the
threshold produce of the area insured. It covers the food crops, cereals, millet, pulses, oil
seeds, and commercial horticulture crops and six crops i.e. sugarcane, potato, chillies,
ginger, onion, and turmeric. Premium rates are as follows:

Bajra-3.5%
Oilseeds-3.5%
Kharif crops-2.5%
Wheat-1.5%
Other rabi crops-2%

In case the rate worked out on the basis of actuarial data is less than prescribed rate, the
lower rate will become applicable. However, for commercial and horticulture crops, the
actuarial rates are charged.
The scheme takes care of small and marginal farmers who are provided with 50%
subsidy on the premium. This subsidy will be phased out gradually over as period of
5 years.
Assistance Pattern

Expenses on account of indemnity claims, Corpus Fund, A & O Expenses, publicity, premium
subsidy to small and marginal farmers are shared between Central and State Governments
on a 50 : 50 basis initially.

Central Government is the policy-making authority for the scheme. Presently, General
Insurance Corporation of India (GIC) is the Implementing Agency. The activities relating
to the implementation of NAIS are carried out through GIC, rural financial institutions,
State Governments/UT Administration and farmers.
Contd...

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