Kerala Milk Co-Operative Launches an Insurance Scheme for Dairy Farmers

The Kerala Cooperative Milk Marketing Federation (Milma) has introduced a new insurance scheme for dairy farmers that offers compensation to them for economic loss due to a decrease in milk yield during the summer. This is a first-of-its-kind cattle insurance plan in the state. The insurance policy covers the loss incurred by dairy farmers during the summer months when the temperature rises and the daily milk yield of cows decreases.

Farmers have welcomed the initiative, with one of them stating that this scheme is encouraging for farmers. Under the scheme, the temperature limit is fixed for each district, and the payout is done if the temperature exceeds six, eight, 10 or 25 consecutive days. The compensation amount varies based on the number of days of consecutive temperature increase. The farmers will get a compensation of ₹ 140, ₹ 440, ₹ 900, and ₹ 2,000, respectively. The policy costs ₹ 100 per animal, and the Kerala Cooperative Milk Marketing Federation (Milma) bears 50% of the premium cost.

The insurance scheme is designed to provide relief to dairy farmers who face business losses during the summer months when the temperature soars. The scheme is intended to ensure that the farmers do not suffer financial losses due to the decrease in milk yield during the summer. The farmers need not file claims and struggle for payment, as the claim is settled automatically based on weather data.

The insurance scheme is expected to cover around 15,000 cattle, and each insured cattle will be eligible for a maximum cover of ₹ 2,000 in April and May. The temperature will be monitored using IMD's satellite data, and farmers need not inform the insurance company. The Agriculture Insurance Company of India Ltd (AIC) has launched the policy.

Dairy farmers have expressed relief and hope that the insurance will help them recover their losses during the summer months. Benny John, a cattle farmer, said that he spends ₹ 360 a day on feed, and the yield of his cows has come down from ₹ 900 to ₹ 700 per day during the summer season. He hopes that the insurance will help him recover some of his losses.

The scheme is expected to cover around 15,000 cattle, and each insured cattle will be eligible for a maximum cover of ₹ 2,000 in April and May. The policy costs ₹ 100 per animal, and the Kerala Cooperative Milk Marketing Federation (Milma) bears 50% of the premium cost.

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