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AGRICULTURE
CHATRUDEE THEPARAT
The Bank for Agriculture and Agricultural Co-operatives (BAAC) plans to expand its crop insurance scheme to cover rice next year. BAAC president Teerapong Tungteerasunun said yesterday that the state-owned bank may provide an insurance programme for rice farmers to guard against natural disasters.
A study on the feasibility of the plan will be conducted between July and September.
The insurance would first cover key rice production areas such as Phetchaburi, Phitsanulok, Sukhothai and other central provinces.
Mr Teerapong said rice insurance coverage was complicated and closely linked to flooding. Cultivation areas that are subject to regular floods would be excluded.
He said the insurance premiums for rice would be slightly higher than for maize because of greater risk. He said that flooding affects both farmers' assets and production, while drought usually only affects crops.
The BAAC introduced crop insurance last year, an ambitious scheme to reduce risk. The programme was developed in co-operation with the Insurance Department and the General Insurance Association.
The programme first covered only maize in Pak Chong district in Nakhon Ratchasima, the country's main maize-growing area, before expanding to cover farmers in other areas this year including Phetchabun, Lop Buri, Nakhon Sawan, Sara Buri, and Nakhon Ratchasima.
A total of 344 farmers have participated in the programme this year and have insured 6,988 rai for 17.4 million baht. Premium rates would range from 80 to 120 baht per rai to insure 1,200 to 1,700 baht per rai.
The protection period has been structured to cover maize for the cultivation period (30 days), growth (20 days) and flowering (30 days).
The World Bank and local insurance firms have conducted pilot projects in Thailand over the past two years: one for maize farmers in Pak Chong and the other for rice farmers in Phetchabun.The crop insurance product has been based mainly on the weather index and rainfall.
Over nine insurers have taken part including Bangkok Insurance, Siam Commercial Samaggi Insurance, Dhipya Insurance, Navakij Insurance, Mitsui Sumitomo Insurance, Viriyah Insurance, and Thai Reinsurance.
Following a drought in Lam Narai District in Lop Buri, insurers yesterday paid compensation of 43,188.40 baht yesterday to 21 farmers.
Mr Teerapong said compensation payments reflected the risk that could occur during the cultivation period, urging related agencies to educate farmers to join the scheme to guard against natural disasters on their crops.
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