Policy paralysis costs Kashmir orchardists Rs 600 Cr losses

Srinagar, Sep 11: As inclement weather, highway closures, and floods damaged orchards in parts of Kashmir, the Valley’s horticulture sector has suffered massive losses estimated at Rs 500 to 600 crore.

The crisis has once again shifted focus to a long-pending demand of fruit growers: crop insurance for Kashmir’s main cash crop.

A senior Horticulture Department official said that while exact figures were still being assessed, the losses were “substantial.”

“Vehicles remained stranded on the highway for days, and many fruit-laden trucks returned with rotten produce. It is too early to put an exact figure, but yes, the sector has suffered serious losses,” the official said.

Chairman, Kashmir Valley Fruit Growers and Dealers Union, Bashir Ahmad Basheer, put the losses between Rs 500 and 600 crore, stressing that growers remain without any protection.

“We have been demanding crop insurance for years. Despite repeated announcements, there is no such scheme in place for orchardists. This leaves us exposed to every weather shock and highway disruption,” Basheer said.

Despite government assurances, Kashmir’s Rs 20,000 crore horticulture sector, which provides nearly 9 crore mandays of employment annually, continues to remain outside the ambit of crop insurance. Officials said high premium rates and lack of insurer participation have made the scheme unviable in J&K.

“The delay in implementation of crop insurance for horticulture crops has been mainly due to non-participation and absence of healthy competition, coupled with high premium rates. That is why the scheme could not be implemented in J&K so far,” officials said.

They said that while the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) were formally adopted in J&K in 2016, these had not been rolled out for horticulture crops.

“In November 2024, bids were invited from empanelled insurance companies to implement RWBCIS in both Kashmir and Jammu divisions. For Kashmir, bids were received from AIC of India and Iffco-Tokio for apple and saffron crops. Iffco-Tokio emerged as the lowest bidder. But their premium quotes ranged from 15.15 percent to nearly 30 percent, the rates that the government found difficult to justify,” the officials said.

The matter was reviewed by the State Level Coordination Committee on Crop Insurance (SLCCCI), chaired by the Chief Secretary, in May this year.

According to officials, the committee raised concerns about affordability and the past track record of insurers.

“It would be beneficial for the scheme if the performance of the shortlisted insurance companies in other sectors operating in J&K is evaluated,” the committee said.

The process was eventually scrapped and re-tendered in the hope of attracting more bidders with competitive rates.

Meanwhile, growers continue to bear the brunt of climate shocks.

This year’s prolonged dry spell and abnormal heat stunted fruit development, with orchardists reporting lighter produce likely to fetch lower prices.

“Fruit growers in Kashmir have consistently urged the government to introduce crop insurance and a Minimum Support Price for apples, but both demands remain unfulfilled,” said Shabir Ahmad, a representative of the growers from Shopian.

Between 2018-19 and 2023-24, J&K’s fresh and dry fruit production increased from 20.06 lakh metric tonnes to 26.43 lakh metric tonnes, official figures state.

The government functionaries often highlight this growth.

“The horticulture sector has been our silent achiever. This growth isn’t just about numbers; it’s about the improved livelihoods of thousands of farmers across the region,” a senior Agriculture Production Department official said.

But growers say such assurances ring hollow without crop insurance.

“One hailstorm or early snowfall can destroy an entire season’s worth of earnings. Until there is a proper insurance mechanism, growers remain at the mercy of weather and road conditions,” said an orchardist in Sopore.