VIJAYAWADA: In an attempt to save small farmers from unfavourable price fluctuations due to unpredictable market conditions, Syngenta India has entered into an agreement to with Agriculture Insurance Company of India (AIC) for chilli growers in Guntur.
The MoU aims to facilitate in guaranteeing a fair price to the farmers for their crop produce by indemnifying them for losses incurred due to a fall in the market prices.MK Poddar, CMD, AIC said the product protects policyholders against unexpected falls in market prices.
“If the market prices fall for the insured crop to a level below the threshold or guaranteed price, resulting in a loss, AIC will compensate the policyholder by providing the difference between this threshold price and the market model price,” he said. Dr KC Ravi, chief sustainability officer, Syngenta India said the initiative is designed to provide smallholder farmers the requisite shield against market price fluctuation, securing their income and supporting them to keep cultivating their preferred crop.
He further stated that the scheme by Syngenta’s vegetable seeds division and AIC will be a game-changer for chilli growers. “Around 80% of the red dry auction happens at the Guntur APMC yard. So it was the right place to launch the project,” added Ravi.