Crop Insurance Scheme amid cropAccording to the sources, it has been reported that the rice farmers in Indonesia’s main rice growing area Bali are hoping to benefit from the province’s crop insurance program, which was launched in October 2015 to protect farmers from crop failures caused by disasters such as drought, flooding or pest attacks. Further it has been revealed that this program is a part of the larger Indonesian crop insurance scheme launched in 2012-13 with financial support from the Japan International Cooperation Agency (JICA). The scheme promises to pay farmers up to six million rupiah (around $480) for a crop failure. Under the program, the government will pay 80% of the premium of 180,000 rupiah (around $13) per hectare.

Indian Queen Basmati Rice by Bharat Industrial Enterprises Limited

In this regard, it has also been stated that the Indonesian crop insurance scheme already covers 470 hectares of rice fields in East Java and Sumatra. In this current year, it has included Bali and few other provinces. The Head of the Bali Provincial Agriculture and Foodstuffs Affairs Office noted that the program aims to cover 4,000 hectares this year.  Although the scheme currently targets only small-scale farmers, but it aims to bring in all 27 million farmers in Indonesia’s 33 provinces by 2019. Meanwhile, around 1,000 hectares of farm land in Bali is suffering severe drought conditions induced by the El Nino weather phenomenon, which threaten the upcoming harvest. However, farmers are sceptical about the claims settlement under the scheme.