THIRUVANANTHAPURAM: A rise in temperature this summer is not necessarily going to be a major worry for dairy farmers as Milma has facilitated an insurance scheme against a potential drop in milk production during hot weather.
Even farmers in Punalur and Palakkad, experiencing some of the country’s highest temperatures currently, are covered under the ‘Saral Krishi Bima’ -- a heat index-based cattle insurance scheme. Insurance provides a financial safety net for dairy farmers, offering compensation for losses incurred due to climate-related events.
A farmer can claim up to Rs 2,000 per animal for a subsidised premium of Rs 50. The scheme is considered a climate change risk mitigation measure as the rising temperatures can lead to heat stress in cows, resulting in decreased milk yield and quality.
Milk production usually declines by 15% in the state during summers. According to the India Meteorological Department, the maximum temperature has increased by 2 to 4 degrees Celsius in most places and they have predicted above average temperatures till May.
The scheme, facilitated by the Agriculture Insurance Company of India Limited (AIC), has seen over 72,000 cattle insured against temperature fluctuations in March and April alone.
Each taluk has a designated temperature threshold, and farmers receive insurance payouts based on the number of days the threshold is exceeded.
These thresholds vary significantly, ranging from 31.3 degrees Celsius in Thiruvananthapuram to 39.3 degrees Celsius in Palakkad.
“Insurance protection is one of the measures adopted for climate change impact mitigation. The farmer can join the scheme without any additional cost as Milma gives a subsidy of Rs 60 and the rest of the money is taken up by the local milk cooperative union,” said Milma chairperson K S Mani.
Introduced last year as a pilot project with limited coverage, the scheme has since been expanded to offer more favourable terms to farmers, including taluk-level temperature thresholds. The regional milk producers unions of Milma in Malabar and Thiruvananthapuram, covering 10 districts, have adopted the scheme.
Last year, only 2,278 cattle in Kannur and Kasaragod received claims out of the 14,338 insured in six districts, with conditions requiring the threshold to be breached on seven straight days within a 30-day period for eligibility. Even then, the scheme is considered advantageous for farmers as the final claim received came to Rs 29 lakh for a Rs 6-lakh premium paid.
This year, the scheme has been made more attractive with farmers eligible for a minimum claim if the threshold is exceeded for at least six days within a 60-day period in their locality.