KRISHI SAFE – A Novel Agri-Insurance Concept

Inspiration

Small and marginal farmers constitute more than 85% of farmers in India. In the last 5 years, around 36 mega hectares of agricultural land was affected in India, translating to a huge 30,000 crore rupees loss for farmers. Unfortunately due to lack of awareness, cash crunches, and red tape riddled govt. schemes, less than 26% of cropped area is covered under insurance today. This has led to farmers falling into debt traps and often committing suicide. I felt that a non-cash based insurance scheme along with mentoring on scientific and sustainable agricultural principles is the need of the hour and thus the idea of Krishi Safe was born.

What is Krishi Safe?

In this model, crop premiums will be paid not in cash, but as a commitment to give a percentage of the harvest output. In the event of crop failure, the insurance premium shall be written off and the insured amount shall be paid to the farmer. However, in such cases there shall be nominal increase in premium for the next cycle of harvest, so as to offset the risk of the insurer. The percentage of premium is calculated using machine learning algorithms that analyse multiple parameters such as the weather patterns of the region, the probability of pest infestation and the global commodities market prices. The insurer shall also act as mentors for the farmers, by providing them with regular lessons on scientific and sustainable farming practices, and ways to improve farm yield. Modern agricultural equipment such as solar tractors and high yielding seeds shall be provided to farmers at subsidized rates. Farmers who follow these practices shall have to commit to a lower premium thus creating a win-win situation for farmers and insurers. The insurer shall guide the farmer on What to Cultivate, How to Cultivate and Where to Sell. Farmer communities with the village headman and other influential members shall be formed to spread awareness and increase adoption of KRISHI SAFE.

Challenges I Faced and How I Solved Them

The initial idea was just to replace cash with farm produce. However I realized that given the magnitude of crop failure in India, it may not be economically feasible for insurance providers to offer such a product. Hence, I developed the idea of forecasting the risk using AI/ML algorithms and adjusting the premium accordingly. I also incorporated the idea of mentoring the farmers on scientific and sustainable agricultural practices and offering modern agricultural machinery at subsidized rates to create a win-win proposition.

What I Learned?

I learned that the farming community in India needs our support and help and that innovative financial solutions can go a long way in empowering the farmers and improving their quality of life, thereby boosting the nation's progress itself.