Working Groups for the Eleventh Five Year Plan (2007-2012)

Risk Management in Agriculture

Dated 28th June, 2006

In pursuance of PC Division U.O. No. N-11016/4/2005-PC dated 21st December, 2005, it has been decided to constitute a Working Group on Risk Management in Agriculture for the Eleventh Five Year Plan with the following Composition and Terms of Reference.

2. The composition of the Working Group is as under:


Shri R.C.A. Jain, Former Secretary, Department of Agriculture and Cooperation, D-61,Panchsheel Enclave, New Delhi-110017.

- Chairman


Dr. S.M. Jharwal, Principal Adviser, Deptt. of Agriculture and Cooperation, Krishi Bhavan, New Delhi.

- Member


Dr. Rajas K. Parchure, Professor, National Insurance Academy, Balewadi, Baner Road, NIA, P.O., Pune -411 045 Fax No. 020-27204555.

- Member


Prof. M. Ramaswamy, Indian Statistical Institute, Qutub Institutional Area, New Delhi

- Member


Dr Gopal Naik, Professor, Indian Institute of Management, Bannerghatta Road, Banglore- 560 076, Fax 080-26582450

- Member


Shri Mathew Varghese, Member, Insurance Regulatory and Development Authority, Parasirama Bhavanam, Basheerbagh, Hyderabad-500 004, Fax No. 040-5582 3334

- Member


Shri Rahul Khuliar, Additional Secretary (Plantation), Ministry of Commerce, Udyog Bhawan, New Delhi.

- Member


Shri Satish Chandra, Jt. Secretary (Credit and Cooperation),             Deptt. of Agriculture and Cooperation, Krishi Bhavan, New Delhi.

- Member


Dr. Rajiv Mehta, Member- Secretary, Commision for Agricultural Costs and Prices, Krishi Bhawan, New Delhi.

- Member


Shri G.C. Chaturvedi, Joint Secretary (Banking and Insurance), Deptt. of Economic Affairs, Ministry of Finance, New Delhi.

- Member


Shri Prabhat Kumar, Director, ICRISAT, NASC, New Delhi 11012*

- Member


Shri Subhash C. Grover, M.D, Cotton Corporation of India, Navi Mumbai-400614.

- Member


Mr. Alok Ranjan, Managing Director, National Agricultural, Cooperative Marketing Federation of India (NAFED), Ashram Chowk, New Delhi.

- Member


Dr Rajsekharan, Chief (Agriculture), Kerala State Planning Board, Thiruananthapuram.

- Member


Shri S.K. Mitra, Executive Director, NABARD, 24, NABARD Tower, Rajendar Place, New Delhi-110008.

- Member


Dr. Damodar Tripathy, International Development Economist - Managing Director, DJ. Research and Consultancy Pvt. Ltd. N-l/69 IRC Village, Nayapalli, Bhubaneswar, Orissa.

- Member


Shri Sudhir Bhargava, Director, Agroman Systems Private Ltd., 25, Tardeo A/C Market, Mumbai-400034,Telefax No. 022-23514194

- Member


Mr. Harkirat Singh, Executive Director.(Retd.), LLC, 334, Neelgivi Appartments, Alaknanda, New Delhi-110019.

- Member


Dr, Avinash Kumar, Additional Chief Secretary (Agriculture and Cooperation), Government of Gujarat, Gandhinagar.

- Member


Shri R. K. Swain, Secretary (Agriculture), Govt, of Madhya Pradesh, Mantralaya, Vallabh Bhawan, Bhopal-462004.

- Member


Shri Mukesh Khullar, Secretary (Agri.), Government of Maharashtra, Mantralaya, Mumbai-400032.

- Member


Shri Ajit Narain, Managing Director and CEO, IFFCO- TOKIO General Insurance Ltd., IFFCO Tower, Plot No.3, Sector 29, Gurgaon, Haryana 122 001

- Member


Shri Sandeep Bakshi, MD and CEO, ICICI Lombard General Insurance Co. Ltd, 2nd Floor, Zenith House,. Keshavrao Khadye Marg,   Opp. Race Course, Mahalaxami, Mumbai.

- Member


Shri Sam Ghosh, CEO, Bajaj Allianz Life Insurance Company Limited, GE Plaza Airport Road Yerwada, Pune-411006.

- Member


Ms. Mamta Shankar, Director, National Commission on; Farmers, Office Block, 2nd Floor, NASC Complex, Opp. Toda

- Member


Smt. Rugmini Parmar, Director, Plan Finance-II Division, Department of Expenditure, Ministry of Finance, North Block, New Delhi.



Dr. V.V. Sadamate, Adviser (Agriculture), Planning Commission.



Shri M. Prasad, Chairman-cum-Managing Director, Agriculture Insurance Company of India Ltd. 13th Floor, Amba Deep Building, Kasturba Gandhi Marg, NewDelhi-110001.

- Member Secretary

3. The Terms of Reference (ToR) of the Working Group will be as follows:

  1. To examine the nature and types of risks in agriculture - traditional and modern ways of managing risks.
  2. To review efficacy and adequacy of existing risk management instruments (such as MSP, MIS, Futures market, Contract farming, NAIS, etc.) and to suggest appropriate and farmer friendly schemes for effective management of agricultural prices and production risks.
  3. To examine the potential for agri-insurance offerings and issues associated with demand and returns for related products. Examine the trends and behaviors and identify sectors that influence and stimulate the demand for agri-business assurance.
  4. To examine relevant and proven international experiences to benefit from the best practices available globally.
  5. To chart out a strategy/direction to reflect the diversified needs of the farming community and government policies in the light of emerging agri-insurance sector.
  6. To identify appropriate, profitable and sustainable target segments for agri-business insurance product offerings and suggest a portfolio of products which the insurance company should offer to identified customer segments.
  7. To suggest a suitable pricing approach and policy, appropriate distribution mechanism, suitable channel policies and effective promotional plan for the product offerings.
  8. To suggest basis for limiting/fixing of sum insured and the nature of coverage and indemnity levels.
  9. To explore financial support to the Crop Insurance and possibilities for re-insurance.
  10. To work out Management/Administrative arrangements for effective implementation of Crop Insurance -Public Private Participation - Other infrastructure.
  11. To suggest the structure of a business database and Management Information System (MIS) to continuously monitor and analyse factors such as current customer needs, preferences, practices and the nature of competition.
  12. To review the present status of the National Agricultural Insurance Scheme (Modified Comprehensive Crop Insurance Scheme) and suggest measure for making the scheme more cost effective and beneficial to the farming community.
  13. To review suitability of various types of crop insurances - individual versus area based, single risk versus multi-risk insurance - rainfall versus all weather insurance and suggest a cost effective and beneficial Crop Insurance Scheme.

4. The Working Group may co-opt any other official/ non-official expert/ representative of any organization as member(s), if required.

5. The Working Group may also examine and address any other issues which are important but are not specifically spelt out in the ToR. The Working Group may devise its own procedures for conducting its business including meetings.

6. The expenditure of the official members on TA/DA in connection with the meetings of the Working Group will be borne by their respective Ministry/ Department/ State Government as per the rules of entitlement applicable to them. In case of non-officials, the TA/DA will be borne by the Planning Commission as admissible under SR 190 (a).

7. The Working Group will be serviced by Agriculture Insurance Company of India Ltd., New Delhi.

8. The Working Group will submit its interim Report by the end of July, 2006 and Final Report by the end of September, 2006 to the Planning Commission.

9. Shri Vijay Kumar, Director (Agriculture), Planning Commission, Room No. 466, Yojana Bhawan, New Delhi-110001, ( Tel. No. 011-23096543, e-mail: vijaykumarverma54[at]yahoo[dot]com and Fax No. 011-23096764/23096779) will be the nodal officer of this Working Group and any further query/correspondence in this regard may be made with him.