Insurance against accidents during sugarcane transportation

-Dilip Patil

Sugarcane farmers in India face significant hurdles when transporting their crops from fields to sugar factories. Poor road conditions, overloading of vehicles, and inadequate vehicle maintenance often result in accidents, causing substantial damage to the sugarcane.

In such unfortunate events, farmers typically bear the brunt of the financial loss, as neither sugar factories nor vehicle owners assume responsibility for the damage.

The Extent of Financial Loss:

The financial losses incurred by farmers due to transportation damage can range from 500 kilograms to two tons of sugarcane. Since sugar factories purchase sugarcane at the factory gate, they do not compensate farmers for losses incurred during transportation. Similarly, vehicle owners, who themselves suffer losses, refuse to reimburse farmers. This leaves farmers with a significant financial burden, which can be devastating for their livelihoods.

The Necessity of Sugarcane Transport Insurance:

To mitigate the losses from accidents during sugarcane transport, it is crucial for sugarcane farmers to have access to dedicated transport insurance. Such insurance policies would cover losses resulting from transportation-related accidents, providing farmers with financial protection and enabling them to recover from these setbacks.

Benefits of Sugarcane Transport Insurance:

Sugarcane transport insurance policies offer several key benefits to farmers:

 * Financial Protection: Insurance coverage ensures that farmers are compensated for transportation damage, safeguarding them from financial losses.

 * Peace of Mind: Knowing that their crops are insured provides farmers with peace of mind, allowing them to focus on farming without the constant worry of transportation risks.

 * Compensation: In the event of an accident during transport, the insurance company will provide compensation, enabling farmers to replant and continue their agricultural activities.

The Role of Sugar Factories in the Insurance Process:

A practical approach to addressing the challenges of sugarcane transport involves the active participation of sugar factories in the insurance process. Sugar factories could initially pay the premium for comprehensive sugarcane transport insurance and then recover the cost from farmers through deductions in their sugarcane purchase bills. This approach offers several advantages:

 * Reduced Insurance Costs for Farmers: Sugar factories, through bulk negotiations, can secure better insurance rates, thereby reducing the financial burden on individual farmers.

 * Streamlined Claim Process: Sugar factories can manage the insurance claim process, simplifying it for farmers and ensuring they receive timely compensation.

 * Increased Insurance Accessibility: More farmers would opt for insurance coverage if the process is managed by sugar factories, leading to broader protection across the farming community.

 * Promotion of Better Transport Practices: The involvement of sugar factories in the insurance process can encourage improved transportation practices, reducing damage and the number of insurance claims.

The Role of Insurance Companies and the Government:

Currently, it appears that insurance companies do not offer specialized insurance policies to cover losses from accidents during sugarcane transport. The government must address this issue urgently. The government should:

 * Encourage insurance companies to develop dedicated insurance policies for sugarcane transport.

 * Consider creating a government-backed insurance scheme for sugarcane farmers.

 * Launch awareness campaigns to educate farmers and sugar factories about the benefits of sugarcane transport insurance.

 * Incentivize sugar factories to participate in the insurance process.

 * If necessary, implement legal measures to make insurance coverage mandatory for sugarcane transport.

Conclusion:

Damage to sugarcane during transport is a significant problem that can lead to severe financial hardships for farmers. By implementing sugarcane transport insurance and involving sugar factories in the process, farmers can protect themselves from these losses, ensuring the sustainability of their farming operations. This approach provides financial security, peace of mind, and promotes better transportation practices, benefiting the entire sugarcane supply chain.

The Author Dilip Patil is Managing Director of Karmyogi Ankushrao Tope Samarth Co-op Sugar Factory, Ambad -Jalna. (Maharashtra)