The Indian government is reviving the shrimp crop insurance scheme after a three-decade hiatus, benefiting numerous coastal shrimp farmers. The announcement will be made by Parshottam Rupala, Minister of State for Animal Husbandry, Dairying, and Fisheries, in Gujarat.
The government's partner in this venture is the public sector insurance firm Oriental Insurance Company Ltd, with technical assistance from the Central Institute of Brackish-water Aquaculture. The estimated worth of this initiative is over Rs 1,000 crore.
The previous shrimp crop insurance policy by Oriental was discontinued in 1995-96 due to a severe viral disease outbreak in the industry, leading to a flood of claims from affected farmers. Rupala is also expected to announce the participation of another public sector insurance company, National Insurance Company Limited, in this program.
Shrimp farming is considered a high-risk endeavour due to the susceptibility of crustaceans to various diseases like white spot disease, white faeces syndrome, white tail disease, loose shell, slow growth, and mortality syndromes. This risk factor has made banks and insurance companies cautious about providing support.
The majority of Indian shrimp farming is carried out by small and marginal farmers, with over 1.5 lakh farmers individually owning an average of 2-3 ponds each, covering approximately one million hectares.
However, these farmers face significant challenges in accessing working capital, credit, and insurance. Despite these obstacles, India has become a major exporter of shrimp to the US and China.
While India witnessed a remarkable 430% growth in shrimp production over the past decade, the COVID-19 pandemic caused a sharp decline in production to 6,50,000 MT.
Consequently, Ecuador took over India's position as a leading shrimp exporter to China. To further boost the sector's growth, institutional support such as insurance is deemed essential.
In summary, the Indian government is reintroducing the shrimp crop insurance scheme to support coastal shrimp farmers, partnering with public sector insurers, and recognizing the need for institutional support to bolster the shrimp farming sector after setbacks caused by disease outbreaks and the pandemic.
