Syngenta India has entered into an exclusive agreement with the Agriculture Insurance Company of India (AIC) with an aim to safeguard farmers from unfavourable price fluctuations due to unpredictable market conditions.
The agreement will facilitate guaranteeing a fair price to farmers for their produce by indemnifying them for losses incurred due to a fall in market prices.
K.C. Ravi, chief sustainability officer, Syngenta India, said that the initiative was designed to provide small farmers the requisite shield against market price fluctuation, securing their income and supporting them to keep cultivating the preferred crop.
This scheme would be a game-changer for the growers of chilli. At the Guntur APMC, around 80% of the red dry chilli auction would happen and so it was the right place to launch the pilot project, said Mr. Ravi.
Fasal Bhavantar Kawach , an insurance policy of AIC, protects policyholders against unexpected falls in market prices.
“Price fluctuations force farmers to switch between crops, and at times they can make a wrong decision leading to a low return on investment, which the scheme will be able to prevent,” the official said.
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