Mumbai, Sep 15 (PTI) Post-harvest solutions provider Arya Collateral has partnered with public sector undertaking Agriculture Insurance Company of India (AICIL) to launch a weather-based parametric insurance product for agricultural warehouses in the country.
The product will protect professional warehouse operators against utilisation risk arising due to extreme weather conditions during the growth and harvest stages of the crop, Arya said in a release.
Utilisation risk deters professional warehousing operators from creating storage capacity for farmers at the farm gate. This invariably increases the cost of storage for farmers and other stakeholders.
The insurance pilot has been executed in 28 districts across three states by Arya.
Under this, Arya's designated warehouses are mapped to block-level gridded weather data of the Indian Meteorological Department to enable the insurance coverage.
This helps in protecting professional warehouse operators from the financial downside of paying rent despite low utilisation in case adverse weather leads to lower commodity arrivals, the release said.
Arya's general manager Ritesh Raman said the facility will give confidence to its warehouse business partners to offer competitive rates to its clients.
It is one of a kind solution started in the country to avert the utilisation risk to warehouse owners arising from adverse climate conditions, he added.
Arya provides end-to-end post-harvest commodity management and financing services for smallholder farmers, farmer produce organisations (FPOs) and other stakeholders in remote agricultural markets enabling them to avoid distress sale of agri commodities. PTI HV BAL