PERFORMANCE OF CROP INSURANCE SCHEMES IMPLEMENTED THROUGH PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETIES IN SIRKALI BLOCK, NAGAPATTINAM DISTRICT

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1 Asia Pacific Journal of Research Vol: I Issue XII, April 214 PERFORMANCE OF CROP INSURANCE SCHEMES IMPLEMENTED THROUGH PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETIES IN SIRKALI BLOCK, NAGAPATTINAM DISTRICT 1 Dr. D. THAMBIAH PRABUDOSS Associate Professor and Research Advisor, Department of Cooperation, TBML College, Porayar Mr. K. KARTHIGESAN Ph.D Research Scholar, Department of Cooperation, TBML College, Porayar-69 37, karthigesan198@gmail.com ABSTRACT The co-operative movement, which is largest socio-economic movement in world, has contributed significantly to alleviation of poverty, creation of productive employment as well as enhancement of social integration in country. The co-operative movement in India, particularly in Tamil Nadu, has taken deep roots in various sectors and is making a significant contribution towards economic development and social progress of people. The cooperative sector is mainly concerned with agricultural credit, marketing of agricultural produce and distribution of fertilizers and pesticides and or essential commodities. This article highlights performance crop insurance schemes implemented through of primary agricultural cooperative credit societies in Sirkali block, Nagapattinam District. KEYWORDS: Co-operative movement in India, Crop insurance schemes, Agricultural credit, Gross Domestic Product, Progress of PACCS, Marginal Big Farmers, Small Farmers INTRODUCTION Agricultural is life line of National Economy and its growth is very vital for sustainable food security and well being of its citizen. The foremost priority of Government is to ensure adequate availability of food to all. The food crisis that had occurred in previous years due to floods and drought had been managed on account of due importance given to Agricultural sector through various interventions made in increasing area, production and productivity of crops that are used as raw materials for agro based industries such as textiles, sugar and edible oils besides major food crops. Over time, contribution of agricultural sector to national GDP as well as State GDP has been steadily declining. The share of agricultural sector in Gross State Domestic Product which was about 42.46% during has come down to 7.% in Agricultural would continue to be a Page 171

2 Asia Pacific Journal of Research Vol: I Issue XII, April 214 key sector in economic development of a State and also Agricultural is major livelihood provider to about 4% of population of Tamil Nadu especially to less endowed rural people. CROP INSURANCE Crop insurance refers to an insurance which insures farmers and crop producers against ir loss of crops due to natural disasters, such as hail drought, and floods, failure of monsoon. There are two types of crop insurance :1.Crop-yield insurance and 2.Crop-revenue insurance, important objectives of crop insurance are. i) To provide insurance coverage and financial support to farmers in event of prevented notified crop as a result of natural calamities, Pests & diseases. ii) To encourage to adopt progressive farming practices' high value in out sand better technology in Agriculture. iii) To stabilize farm incomes particularly in disaster years. HISTORY OF CROP INSURANCE SCHEMES Crop Insurance History: In our country crop production has been subjected to conditions vagaries of climate. Some of or problems that Indian agricultural is constantly tackling with are large-scale damages that are caused as a result of attack of pests and diseases. It is in a scenario such as this in India that issue of crop insurance assumes a vital role in stable growth of agricultural sector. Tracing Crop Insurance History in India we see that it was started with introduction of All-Risk Comprehensive Crop Insurance Scheme (CCIS) that covered major crops. This scheme was introduced in 198. In fact this period of introduction also coincided with introduction of Seventh-Five-year plan. This initial scheme was of course later substituted and replaced by National Agricultural Insurance Scheme. This substitution came into effect from1999. These Schemes that have been introduced throughout crop insurance history have been preceded by years of preparation, studies, planning, experiments and trials on a pilot basis. In crop insurance history, question of introducing a crop insurance scheme was taken up for examination soon after Indian independence. The first aspect that was examined related to modalities of crop insurance. The issue under consideration was about wher crop insurance should be offered under an Individual approach or on Homogenous area approach. CROP INSURANCE SCHEMES IN TAMIL NADU In order to provide a boost to agricultural in India, a number of experimental crop Insurance schemes have been introduced in country. The first ones of experimental crop insurance schemes has been a Pilot Crop Insurance scheme. This was introduced by GLC (General Insurance Company) from year Some of important features of scheme were that scheme was based on Area Approach. This scheme covered crops such as Cereals, Millets, Oilseeds, Cotton, Potato and Gram. The scheme was confined to loaned farmers only and on voluntary basis. The risk was shared between General Insurance Corporation of India and State Governments in ratio of 2:1. The maximum sum that could be insured under scheme was 1% of crop loan, which was later increased to 1%. Under this scheme, % of subsidy was provided for insurance charges which was payable to small / marginal farmers by State Government and Government of India on : basis. Page 172

3 Asia Pacific Journal of Research Vol: I Issue XII, April 214 NATIONAL AGRICULTURAL INSURANCE SCHEME In India, an all-risk Comprehensive Crop Insurance Scheme (CCIS) for major crops was introduced in 198. It was subsequently replaced by National Agricultural Insurance Scheme (NAIS) with effect from AIC (Agricultural Insurance Company) has taken over implementation of National Agricultural Insurance Scheme which was previously being implemented by General Insurance Corporation of India. NAIS is one of largest insurance plans for farmers in world. The object of scheme is to provide insurance coverage and financial support to farmers in event of failure of any of notified crop as a result of natural calamities, pests and diseases, to encourage farmers to adopt progressive farming practices, high value inputs and higher technology in agricultural and to help stabilize farm incomes, particularly in disaster years. FUNCTIONS OF PACCS It provide credit to farmers, distribute inputs like fertilizers and also run outlets under Public Distribution System. These societies provide short term and medium term credit for agriculture and allied activities. Primary Agricultural Cooperative Credit Societies also issue loans for or agricultural purposes like purchase of farm machineries and for non-agricultural purposes including loans for purchase of consumer durables, housing loans, education loans and professional loans. To provide marketing facilities for sale of agricultural produce To associate itself with economic and social welfare programmes of village. PACCS IN NAGAPATTINAM DISTRICT The organization of Cooperative System in Tamilnadu is integrated vertically on basis of functional responsibilities viz Primary Agricultural Cooperative Banks at base level District Central Cooperative Banks in middle level and State Cooperative Bank at apex level. The Primary Societies at base are in general multipurpose in character. But in a large number of cases y deal mainly with credit. There are 122 Primary Agricultural Cooperative Credit Societies in Nagapattinam District lending Short term and Medium term agricultural credit to farmers dealing in seasonal agricultural operations. An unique feature of Agricultural Cooperative Banking in our country is organization of separate institutions for providing long term loans, on mortgage of loaded property. To issue especially long-term loans, an independent agency viz Primary Cooperative Agricultural and Rural Development Banks are established. In Nagapattinam District. Three Primary Cooperative Agricultural Rural Development Banks are functioning one each at Vedaraniyam, Sirkali, and Mayiladuthurai. Total number of members is 3,298 Out of this 1861 belong to Scheduled Castes. The Share Capital Collection from members was Rs lakhs as on The purpose of loans issued by Primary Cooperative Agricultural Rural Development Bank is for Minor Irrigation, Farm Mechanisation, NFS activities and Animal Husbandry etc. During year a sum of Rs lakhs have been disbursed by three Primary Cooperative Agricultural and Rural Development Banks for purposes mentioned above. STATEMENT OF THE PROBLEM Agricultural production is filled with risk and uncertainty conditions. Risks are very many generally measurable, whereas uncertainty situations are not amenable to measurement. This general distinction is lot in modern usage and hence, both terms are used interchangeably. Wear uncertainty, price risk and production risks are major types confronting Indian agricultural. Page 173

4 Asia Pacific Journal of Research Vol: I Issue XII, April 214 However, risks also emanate from institutional changes along with natural hazards like flood, drought hail, cyclones, hurricane, earthquakes, etc. Natural hazards cause widespread devastation and grave loss to properties of human and ir lives. Under such situations, are not only high in magnitude but also more frequent. Hence, farmers in se regions have developed risk adverse attitudes. Many management strategies have been evolved over time to combat production risks. They are practices of improvement of soil moisture holding capacity through bunding, leveling, mulching, strip cropping, mixed cropping coupled with or agronomic practices and tendency practices. Crop insurance, of late is being given prime importance by Government of India primarily with idea of safeguarding farmers against crop losses during drought and floods year. The Government has now introduced comprehensive crop insurance scheme since 198. The scheme was optional for State Governments. The Scheme was linked to short term crop credit and implemented on Homogeneous Area approach. 1 State and UTs implemented Scheme until Kharif These were Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Disaster management programmes will be implemented by Government with large scale help coming both from people and Government. Market risks arise from fluctuations in demand and supply situations of good and over indulgence of middlemen in market system. Vegetable producers, fruits, commercial agricultural products, etc. do have substantial market risk, sometimes forcing producer into helpless distress sales situation like dumping, etc. Strategies like storage, processing hedging, and so on. Risk that are associated with wear aberrations such as changes in rainfall distribution, quantum of rainfall, floods droughts, etc, result in heavy losses of crop and livestock products. Inefficient management of farms due to illiteracy, ill - health and ignorance along with institutional risk also causes losses in production of crop and allied products. The productions risks in dry land agricultural due to se factors Orissa, Tamil Nadu, Tripura, West Bengal, Andaman & Nicobar Islands and Puducherry. This study has been undertaken to study efficacy of crop insurance scheme in mitigating problems of farmers with special reference to Sirkali block Nagapattinam district. SAMPLING DESIGN The present study is both descriptive and analytical and uses both primary and secondary area data. Data pertaining to history and growth of PACCS, membership pattern, mobilization of researchers and deployment of researchers, orgnisational structure and business performance were elicited from books and records maintained by sample PACCS. METHODOLOGY Survey method adopted for this study. Only secondary data will be collected to analyse problem under study. OBJECTIVES OF THE STUDY 1. To analyse performance of crop Insurance Schemes in Tamil Nadu. 2. To study crop Insurance schemes implemented by PACCSs in Sirkali block, Nagapattinam District. 3. A study on performance of primary agricultural cooperative credit societies in implementing crop Insurance schemes in Sirkali block, Nagapattinam District. 4. To offer suggestions to improve performance of primary agricultural cooperative credit societies in implementing crop Insurance schemes in Sirkali block, Nagapattinam District. Page 174

5 AGANI VAITHESW ARAN KOIL KATHIRUP PU SEMMANG UDI PERUNTHO TTAM MANIGRAM AM POOMPUKA R AGANI VAITHESW ARAN KOIL KATHIRUP PU SEMMANG UDI PERUNTHO TTAM MANIGRA MAM POOMPUK AR Asia Pacific Journal of Research Vol: I Issue XII, April 214 PERFORMANCE OF PACCS IN SIRKALI BLOCK - AN ANALYSIS The block wise position of total small farmers, total marginal big farmers, total hectares, total sum insured, total premium of PACCS in Sirkali block, Nagapattinam District during 28-9 to Table 1 Block Wise Position of Total Insured Small Farmers (No. of Farmers) It is noted that Table 1 shows block wise position of total insured small farmers of PACCS in Sirkali block, Nagapattinam District during 28-9 to Agani, Vaieswarankoil, Semmangudi and Perunthottam PACCS block wise position of increased trend during period of study, Kondal, Nimeli, Kathiruppu, Manigramam and Thiruvali PACCS shows a fluctuating trend during period of study and followed by Poompuhar PACCS declined trend entire study period. Hence, it is concluded that Agani and Semmangudi PACCS good performance during period of study. Table 2 Block Wise Position of Total Insured Big Farmers (No. of Farmers) It has inferred that Table 2 explains block wise position of total insured big farmers of PACCS in Sirkali block, Nagapattinam District during 28-9 to Agani, Vaieswarankoil, Semmangudi, Perunthottam and Thiruvali PACCS block wise position of increased trend during period of study, Kondal, Nimeli, Kathiruppu and Manigramam PACCS shows a fluctuating trend during period of study and followed by Poompuhar Page 17

6 AGANI VAITHESWARAN KOIL KATHIRUPPU SEMMANGUDI PERUNTHOTTA M MANIGRAMAM POOMPUKAR Asia Pacific Journal of Research Vol: I Issue XII, April 214 PACCS declined trend entire study period. Thus, it has been cleared Vaieswarankoil and Semmangudi PACCS good performance during period of study. that Table 3 Block Wise Position of Total Insured Hectares (in Hectares) S.N o Name of Societ y , As per details shown in Table 3 that block wise position of total insured hectares of PACCS in Sirkali block, Nagapattinam District during 28-9 to Agani, Vaieswarankoil, Semmangudi, Perunthottam and Thiruvali PACCS block wise position of increased trend during period of study, Kondal, Nimeli, Kathiruppu and Manigramam PACCS shows a fluctuating trend during period of study and followed by Poompuhar PACCS declined trend entire study period. Hence, it has been cleared that Semmangudi and Thiruvali PACCS good performance during period of study. Page 176

7 AGANI VAITHES WARAN KOIL KATHIRUP PU SEMMANG UDI PERUNTH OTTAM MANIGRA MAM THIRUVAL I POOMPUK AR AGANI VAITHESWA RAN KOIL KATHIRUPP U SEMMANGU DI PERUNTHOT TAM MANIGRAM AM POOMPUKA R Asia Pacific Journal of Research Vol: I Issue XII, April 214 Table 4 Block Wise Position of Total Sum Insured (Rs. in Lakhs) Name of As per details shown in Table 4 that block wise position of total sum insured of PACCS in Sirkali block, Nagapattinam District during 28-9 to Agani, Nimeli, Vaieswarankoil, Semmangudi, Perunthottam and Thiruvali PACCS block wise position of increased trend during period of study followed by Kondal, and Kathiruppu PACCS increased trend during period of study except Manigramam PACCS shows a fluctuating trend during period of study and Poompuhar PACCS declined trend entire study period. Hence, it has been cleared that Agani, Vaieswarankoil and Thiruvali PACCS good performance during year Table Block Wise Position of Total Premium (Rs in Lakhs) From Table shows that block wise position of total premium of PACCS in Sirkali block, Nagapattinam District during 28-9 to Agani, Vaieswarankoil, and Thiruvali PACCS block wise position of increased trend during period of study followed by Kondal, Nimeli, Kathiruppu and Manigramam, PACCS increased trend during period of study except Semmangudi, Perunthottam PACCS shows a fluctuating trend during period of study and Poompuhar PACCS declined trend entire study period. Hence, it is Page 177

8 AGANI VAITHESW ARAN KOIL KATHIRUP PU SEMMANG UDI PERUNTHO TTAM MANIGRA MAM POOMPUK AR AGANI VAITHES WARAN KOIL KATHIRU PPU SEMMAN GUDI PERUNTH OTTAM MANIGR AMAM THIRUVA LI POOMPU KAR Asia Pacific Journal of Research Vol: I Issue XII, April 214 concluded that Kondal, Kathiruppu and Agani PACCS block wise position of total premium good performance during year Table 6 Block Wise Position of Disbursement amount (Rs in Lakhs) From Table 6 shows that block wise position of disbursement amount of PACCS in Sirkali block, Nagapattinam District, during year 28-9 to Agani, Kondal, Nimeli, Vaieswarankoil, Thiruvali Kathiruppu, Semmangudi, Perunthottam, Manigramam and Poompuhar PACCS disbursement amount of losses 28.8 percent in year Table 7 Block Wise Position of Beneficiaries farmers (Rs in Lakhs) It is noted that Table 7 shows that block wise position of beneficiaries farmers PACCS in Sirkali block, Nagapattinam District. No benefit of farmers during year 28-9 to except in 21-11, Agani, Kondal, Nimeli, Vaieswarankoil, Thiruvali Kathiruppu, Semmangudi, Perunthottam, Manigramam and Poompuhar only benefit of PACCS farmers in year SUGGESTIONS AND RECOMMENDATIONS The following important suggestions and recommendations are as under. Performance of co-operatives in India has been, by and large, not satisfactory. Despite huge government grants and equity participation, most co-operatives in India are not financially viable. There are many institutional, economic, social, political, organisational and managerial factors that affect performance of co-operatives. Page 178

9 Asia Pacific Journal of Research Vol: I Issue XII, April 214 The competition poses a major threat to co-operatives that are used to thriving on government-conferred privileges including monopolistic status and huge grants and subsidies. There is ample evidence now available to show that this is already happening in processing and marketing of food products such as milk powder, ice cream, fruit drinks, and so on. In view of this, it is now essential for survival and growth of co-operatives that y are professionally managed. Rural co-operatives in India and or developing countries were created through enactment of laws by ir governments as an instrument of purveying production inputs including credit, marketing of agricultural produce, and delivering or benefits such as subsidies and doles. The prime objective of a co-operative is to provide maximum possible benefits to its members whereas that of an investor-oriented is to maximise returns to its investors. One of potential threats to survival and growth of a co-operative arises when it loses or dilutes its focus on its prime objectives. controls and political interference. Most of agribusiness co-operatives in India start as small enterprises and rely upon ir members to carry out functions of management. However, as a co-operative grows and its business becomes larger and complex, it requires professional managers. Like government servants, co-operative managers regularly get ir salary, annual increments and promotions irrespective of ir performance. There are no incentives for good performance and no punishment for poor performance. CONCLUSION The present study concluded that, PACCS are kernel of cooperative movement in India. They are not only purveying rural credit but also empowering farmers and weaker sections of society. But y suffer from poor financial health and chronic overdue. In order to make se societies as democratic, self governing and financially well-managed institutions, proper mobilization and efficient deployment of resources are very essential. As Nagapattinam district offers a good platform for cooperatives, present study analysed financial performance of PACCS in Nagapattinam district. REFERENCES 1. Deshmukh D. M. (1991), Administrative and Financial Management of Salary Earner s Co-operative Credit Societies with Special Reference to Ahmednagar District, October. 2. Kalyankar S.P. (1983), Crop Loan Overdues of Cooperative Finance, Rainbow Publications, Coimbatore. 3. Mamoria, C. B. and Saksena, R. D. (1977), Co-operation in India, Kitab Mahal, Allahabad. 4. Mathur, B. S. (199), Co-operative in India, Sahitya Bhawan, Agra, New Delhi.. Prabhu P.V (1997), Revitalization of Non - viable / Weak Cooperatives, 14th Indian Cooperative Congress, National Cooperative Union of India, New Delhi. 6. Prasad J.V.S., Naidu M.R. and Venkateswaralu U. (1987), Credit Overdue- Certain Factors for Default - A Micro Analysis, Land Bank Journal, Vol.2 (4). 7. Savaraish, G. (1988), Rural Banking in India: An Empirical Study, Daya Publishing House, Delhi. Page 179