Law of Supply

 

Law of Supply

SUPPLY:       

Supply means the quantity of service offered by a producer for sale at different unit prices in a given market at given point of time.

According to Meyers, “A schedule of the amount of good that would be offered for sale at all possible prices at any one instance of time in which the condition of supply remains the same”.

Market Supply:

It is the sum of the quantity of a commodity that is brought into a market for sale by the sellers in a given market at a specific time. Quantity supplied is the amount of a good that sellers are willing and able to sell. Graphically, individual supply curves are summed horizontally to obtain the market supply curve.

LAW OF SUPPLY – Statement

The law signifies the positive relationship i.e. as the price of a commodity rises its supply extends and as the prices fall in its supply contracts, with other things remaining the same.

The other factors particularly includes technology, use of the factor of production, price of relative product remains the same.

It means supply directly varies with the price, ceteris paribus. Varies directly means as price raises the quantity offered increases and as it falls, the quantity offered decreases. It should be noted that in the case of ‘demand’ quantity varies inversely with the price i.e. as price rises, demand decreases, and vice versa.

EXCEPTIONS FOR LAW OF DEMAND:

 There are some exceptions to the law of demand.

1.    Auction: In an auction, goods are sold away whatever the bid. It is possible that the seller is in need of money and wants a certain amount of money.

2.    Market Conditions: When a heavy fall in prices expected due to panic condition, seller will sell more even if the price falls.

3.    Business Closing: During the times of business closure the owner has to sell all his stock irrespective of the price incurred.

4.    Market Competition: Due to cut-throat competition in the market different market players supply the commodities at a lesser price to get the leading position in the arena.

5.    Perishable Commodities: With less shelf life of perishable commodities, rather than to waste it, the producer has to sell it at lower prices.

6.    Rare Articles, Artisans, and Paintings: Some rare articles are limited in source hence could not able to supply though the price could be more.

The law of supply further explained with the following two curves.

1)   Extension and Contraction of supply (Movement along the supply curve):

When the quantity offered for sale increases or decreases due to rise or fall in prices, extension and contraction of supply arises. Here, the supply schedule is the same and we move up and down the same supply curve.

Extension of supply means that more is offered at a higher price, while an increase in supply signifies that either more is offered at the same price or the same quantity is offered at a lower price as shown in Fig 1. Graphically it shows that there is upward movement from S₃ to S₂ is an extension of the supply curve. The downward movement of S₁ to S₂ is the contraction of supply.

2)   Increase and Decrease in Supply (Shift in Supply Curve):

When the change in quantity offered for the sale is not due to a change in price, but due to a change in the condition of supply, then supply is either increased or decreased one. It means that supply the curve has shifted from the previous position to new position as shown in Fig 2.

Contraction and decrease in supply are the contradictory to extension and increase in supply respectively. Contraction of supply means that less is offered at a lower price, but a decrease in supply means that less is offered at the same price or the same quantity is offered at a higher price.

Graphically, an increase in supply results in the shift of the supply curve towards the right side and the formation of new supply curve S₁S₁. During the decrease in supply, there is a shift of the supply curve towards the left side and the formation of a new curve S₂S₂. Hence, at the same price OP, supplying a quantity of commodity OQ’ indicating an increase in supply.

The elasticity of Supply:

It refers to the sensitiveness or responsiveness of the supply to a change in price. It means elasticity measures the adjustability of the supply of a commodity to price.

The elasticity of supply (Price Elasticity of supply) is expressed as the ratio of the percentage change in the quantity of good supplied and percentage change in the price of the good, ceteris paribus.

Degrees of Elasticity of supply is divided into five groups as like Elasticity of Demand.

1.    Perfectly Elastic Demand (Es = Infinity)

2.    Perfectly Inelastic Demand (Es=0)

3.    Relative Elastic Demand (Es>1)

4.    Relative Inelastic Demand (Es<1)

5.    Unitary Elastic Demand (Es=1).

Factors causing changes in supply:

Following are the factors responsible for changes in supply.

1.    Technology: Due to innovations in technology results in an increase in the yields per unit area.

2.    Natural Conditions: During the period of good harvesting bumper production achieved and natural calamities like floods, cyclones, droughts adverse effects on production. This condition brings about a change in the supply.

3.    Input Prices: When the prices of input become cheaper producers use more input and the supply curve shifts towards the right side and vice versa. It typically impacts the price of the factor of production for commodities.

4.    Market Infrastructure: If good communication and transport network increases then, supply of the commodity also increases.

5.    Expectations: Price expectations influence the marketing strategies of the producers in a positive way.

6.    Number of producers: More the number of producers there will be greater supply and vice versa.

7.    Fiscal Policy: Fiscal policies formulated by the government have an impact on the supply curve. The higher import duty restricts the supply and lower duty will inspire the supply.

8.    Relative price of other products: A reduction in the price of related goods forces the producer to increase the production of goods at higher prices.

YouTube Video:

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Concept of Law of Demand

 

Law of Demand

Demand:

Demand is defined as a schedule that shows the amounts of a product or service the consumers are willing and able to purchase at each price during a specific time and specific markets.

According to Bowden, “Demand is the propensity of the consumers to buy different quantities of a particular good at different unit prices”.

Here, desire and ability to buy are the key components of demand whereas time and Markets are two requisites.

Market Demand:

Market demand is the sum of the demand of all the consumers in a market for a given commodity at a specific point of time. It is a horizontal summation of the demand of individual consumers at each unit price.

Kinds of Demand: There are three kinds of demand.

1.   Price Demand: It refers to various quantities of a good or service that a consumer would be willing to purchase at all possible prices in a given market at a given time, ceteris paribus. Ceteris paribus includes other factors remain unchanged mainly income, tastes, prices, inter-related goods, etc.

2.   Income Demand: It refers to various quantities of a good or services that a consumer would be willing to purchase at different levels of income, ceteris paribus.

3.   Cross Demand: It refers to various quantities of a good or service that a consumer would be willing to purchase not due to change in price this commodity, but due to a change in price of other related commodities.

LAW OF DEMAND:

The law states that inverse relationship between quantity demanded and price, with other conditions remaining the same.

The inverse relationship does not lie proportionately. If the price falls by 15%, it does not follow that the demand will increase exactly by 15%. We can only say that demand will rise when the price falls, but we cannot say much. Here, the tendency of the consumer is to buy more quantities of a commodity at a lower price than what he buys at a higher price.

Demand Curve Slopes Downwards:

Generally, the demand curve slopes downwards as shown in Fig 1. There are three evident reasons why people buy more when the price falls.

ü  A unit of the money goes farther and a consumer can afford to buy more.

ü  When the commodity becomes cheaper one naturally buys more.

ü  A commodity tends to be put to more uses when it becomes cheaper.

 Demand Curve:

The demand curve simply shows how the quantity demanded varies with the variation in price. Along OX are represented the quantity demanded of goods and along OY the prices. It will be seen that from fig 1; at the price OP, OQ quantity demanded. At OP’ quantity demanded is OQ’ and at OP’’ price is OQ’’.

          The demand curve is also known as Average Revenue (AR) curve, because the price paid by the consumer is revenue per unit (i.e. average revenue for the seller).

 Fig. 1: Demand Curve

The law of demand explained further with the following two curves.

1)  Extension and Contraction of Demand (Movement along the demand Curve):

Extension and contraction observed; when the demand changes merely because the price has changed. Extension of demand means more demand at fewer prices. If a man buys less when the price rises, it is simply a contraction of demand. But, if he buys less irrespective of price, it means a decrease in demand.

Here, we travel up and down on the same curve signifies that the demand changes only due to a change in prices. This is a movement along the demand curve as shown in Fig 2. The downward movement from D₂ to D₃ is an extension and the upward movement from D₂ to D₁ is contraction. It represents a change in quantity demanded.

Fig. 2: Movement along with Demand Curve

 

2)  Increase and Decrease of Demand (Shift in the demand curve):

An increase in demand means greater demand at the same price or the same quantity demanded at a higher price. If the demand changes independently of the prices and a man buy more; it is increase in demand.

As the demand increases, the demand curve shifts towards the right side of the initial demand curve DD. Hence, D₁D₁ is the new demand curve representing an increase in demand. At OP’ price, the quantity demanded is OQ

A decrease in demand means less demand at the same price or the same quantity demanded at a lower price. Here, according to Fig. 3, we get entirely new curves above and below the original curve.

 

Fig. 3: Shift in Demand Curve

As the demand decreases, the demand curve shifts towards the left downwards of the initial demand curve DD. Hence, D₂D₂ is the new demand curve representing a decrease in demand. It reflects that purchase of the same quantity of a commodity OQ at a lower price of OP’’. This is a shift in the demand curve.

Exceptions to law of Demand:

1.   Giffen Goods or Inferior Goods: The phenomenon explained by Sir Robert Giffen. According to it, a rise in price is followed by an extension of demand, while a fall in price is followed by a reduction in demand for the good. Goods for which demand increases as income increases are referred to as Normal Goods. While ‘Goods for which demand decreases as income increases are referred to as Inferior Goods’.

It clearly means that sometimes people will buy more when the prices rise and the demand curve moves upwards.

2.   Prestigious Goods: In case the commodity have distinctive feature people will buy more when its price is higher.

3.   Fear of Shortage: When a serious shortage is feared, people buy more even though the prices are rising.

4.   High Priced Commodities: According to the consumer when he thinks that some superior products fetch higher price, they are ready to buy with the increased price.

5.   Trade Cycles: During times of economic prosperity people buy more even though the price goes up, since people’s income has gone up.

6.   Forecasting: If people believe that price of certain goods is going to increase in the future, they may try to purchase them in the present times even at a higher price. Such a phenomenon is observed in stock Market.

Reference Video:

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आरोग्यदायी आणि पर्यावरण पूरक दिवाळी

 

आरोग्यदायी आणि पर्यावरण पूरक दिवाळी

(Kindly Use Google Translator at the Extreme Right Top for Language Selection with Marathi  to English or the desired language.)

भारतात अनेक सण साजरे केले जातात, त्यापैकी दिवाळी हा एक प्रमुख सण आहे. दिवाळी हा भारतीय संस्कृती जपणारा धार्मिक दिव्याचा उत्सव आहे. जी दिवाळी जीवनाचा अंधार दूर करून प्रकाशाचे अस्तित्व निर्माण करते, जेथे दिवा मांगल्याचे प्रतीक मानले जाते. म्हणूनच आपण दीप उत्सव साजरा करतो.

दिवाळीत वापरणाऱ्या खास मातीच्या पणत्या त्यातून निघणाऱ्या सुगंधातून किटाणू आणि विषाणू संपवून वातावरण शुद्ध होते, तसेच नकारात्मक ऊर्जा संपते. आजमितीला कोरोनाच्या होणाऱ्या प्रादुर्भावामुळे दिव्याच्या तेलामध्ये लवंग टाकली तर वातावरणातील शुद्धता वाढते. दिव्याच्या रोषणाईने बाहेरून येणारे प्रभावी किरणे रोखली जातात व आसमंतात दूषित परिणाम थांबवता येतात.

दिवाळी म्हणले, कि दिवाळी चा फराळ आणि नवनवीन मिष्टान्नाचा ओढा सगळीकडे असतो. आपण दिवाळीत एकमेकांना मिष्टान्नाची दिवाण-घेवाण करून आनंद द्विगुणित करत असतो. अशा पदार्थाच्या सेवनातून काही विकार व काही प्रमाणात अन्न विषबाधाही होऊ शकते. त्यामध्ये प्रामुख्याने वापरण्यात येणारे तेल, खवा, साखर यामधील भेसळ हेच प्रमुख कारण आहे. आता आपण जाणून घेऊ वेगवेगळ्या पदार्थातील भेसळ:

1.  चांगल्या प्रतीच्या अन्नधान्य आणि इतर मालाची गुणवत्ता कमी करणे म्हणजेच भेसळ. विक्री करावयाचा कोणताही उत्तम प्रतीचा माल (त्यात इतर पदार्थ मिसळून, किंवा त्यातील कार्यकारी घटक काढून) तो कनिष्ट प्रतीचा करून तो चांगल्या प्रतीचाच असल्याचे दर्शविणे, यास भेसळ करणे असे म्हणतात. अशी भेसळ करण्यामागे जास्तीचा अधिक नफा मिळविणे हाच प्रमुख हेतू असतो.

2.  दैनदिन जीवनात आहारातील विविध अन्न पदार्थांना गोडवा देण्यासाठी सर्वात उपयुक्त घटक म्हणजे साखर. बाजारात साखर, गुळ, मध असे विविध गोडवा आणणारे घटक उपलब्ध आहेत. परंतु या सर्वांमध्ये हि आपणाला भेसळ आढळते. साखर हि दररोज वापरण्याजोगी वस्तू मानली जाते, परंतु तरीही आपल्याला मानवी सुरक्षेसाठी त्याची गुणवत्ता आणि भेसळ याची खात्री करावी लागेल. साखर आणि इतर गोडवा देणारे घटक मुख्यत: कन्फेक्शनरी (Confectionary) क्षेत्रासाठी उपयुक्त आहेत.

अश्याप्रकारच्या भेसळयुक्त गोड पदार्थात रसायने टाकण्याची हि शक्यता असते. यामुळे शरीराला नानाविध अपायकारक विकार जसे कि, यकृताचे विकार, पोटदुखी, अन्नातून विषबाधा, उलट्या, डोकेदुखी, मळमळ उद्भवू शकतात. त्यामुळे आपणाला वेळीच भेसळ ओळखता आली पाहिजे, जेणेकरून आपले शरीर स्वस्थ राहील. सामान्यपणे गोडवा आणणाऱ्या पदार्थात खडू पावडर, धुण्याचा सोडा, पिवळा रंग, युरिया, पांढरी वाळू, दगड, मेटॅनिल अशा विविध घटकांची भेसळ केली जाते.  यासाठी विश्वसनीय दर्जाची आणि चांगल्या गुणवत्तेचीच गोडवा आणणारी घटके अन्न पदार्थात वापरली पाहिजे. 

3.  सर्व प्रकारची मिष्टान्ने बनवण्यासाठी तेलाचा वापर केला जातो. साधारणतः असे आढळून येते कि, सुटे विकल्या जाणाऱ्या तेलापेक्षा पॅकिंग करून विक्रीला आलेल्या तेलामध्ये भेसळीचे प्रमाण कमी असते.

4.  दूध आणि खव्यामध्ये सुद्धा भेसळ आढळून येते. यात असे नमूद करावे वाटते कि, दुधात फक्त पाण्याचीच भेसळ नसून युरिया, सोडियम, स्टार्च  यासारखे घटक रसायने वापरतात. खव्यामध्ये स्निग्धांश विरहित दूध वापरले जाते व तसेच स्टार्चचीही भेसळ केली जाते. 

5.  साधारणतः असे पाहिले जाते कि, अन्नधान्यामध्येहि भरपूर प्रमाणात भेसळ केली जाते. त्यात प्रामुख्याने बाह्य पदार्थ जसे कि खडे, माती, लोखंडाचा चुरा, निकृष्ठ धान्य आदी मिसळले जाते.

पर्यावरण पूरक दिवाळी:

आज आपणाला विचार करावयाची वेळ आली आहे कि, दिवाळी हि खरोखरच अंधार दूर करते कि वाढवते. याला कारण म्हणजे हा सण लहानांपासून ते मोठ्यापर्यंत साऱ्यांना आवडते कारण यात नवीन कपडे, फराळ आदि आणि अजून एक आकर्षण म्हणजे फटाके.

फटाके लहान मुलांना आकर्षित करतात, तेच फटाके कितीतरी जणांना इजा पोहचवतात. यामुळे मंगलपूरक वातावरणात द्रुष्ट लागू नये म्हणून वेळीच काळजी करायला हवी. मोठ्या आवाजातील फटाके बनवण्यास अनेक रसायनाचा उपयोग करतात त्यात सोडियम मेटल, पोटॅशिअम नायट्रेट, अलुमिनिम पावडर, झिंक मेटल यांचा वापर केला जातो. यापासून हवा, पाणी, माती प्रदूषणाची हि समस्या उद्भवते. सांगायचे झाले तर, दिवाळी दरम्यान हवेच्या प्रदूषणामध्ये १०% वाढ होते, यामुळे श्वसनाचे विकार, घशाची खरखर, दमा, खोकला यांचा प्रादुर्भाव वाढतो.

फटाक्यांच्या आवाजाने ध्वनी प्रदूषण हि होते. फटाक्याने वाढणारी आवाजाची पातळी १२५ dB पेक्षा जास्त असते. प्रामुख्याने ८० ते १३० dB च्या आवाजाने तात्पुरता बहिरेपणा येतो, तसेच १५० dB पेक्षा जास्त आवाजाने कानाचा पडदा  फाटणे,कर्ण बधिरता, रक्त दाब वाढणे, मानसिक ताण आदींचा प्रादुर्भाव वाढतो.

आरोग्य हीच संपदा: धार्मिक कार्यातून आरोग्य समृध्द होण्याची प्रार्थना आपण करत असतो. पण या आधुनिक विश्वात समतोल आहार, राहणीमान, आचार विचार, आवडी-निवडी यांची सांगड घालणे अतिशय आवश्यक आहे.

आपणाला पर्यावरण पूरक आणि आरोग्यदायी दिवाळी साजरी करावयाची आहे. जेणेकरून, दिवाळी साठी महिन्याभरापासून जी, साफसफाई करतोय, तो स्वछ सुंदर परिसर राखण्याचा तसेच मांगल्याचे वातावरणात नवीन उत्साहाने प्रफुल्लित होऊन आपली दिवाळी साजरी होईल. ज्यात कोणतीही आरोग्य तसेच पर्यावरण हानी होणार नाही, जी अंधःकारामध्ये प्रकाशमान विजयी असा पाच दिवसांचा असा हा दिवाळी सण ज्यात सकारात्मकता वाढो. सर्वाना आरोग्यदायी दिवाळीच्या हार्दिक शुभेच्या.

 

Crop Insurance Schemes

CROP INSURANCE

Agriculture in India is highly susceptible to risks like floods, drought and others. So it is necessary to protect the farmers against natural calamities. Due to that, GoI introduced many schemes throughout the country. Prof. V. M. Dandekar often referred as Father of Crop Revolution in India.

“Crop Insurance is the scheme purchased by agriculture producers to protect themselves from heavy losses due to natural calamities and to stabilize the farm business during the period of crop failure”. 

General Objectives for Crop Insurance:

These are the general objectives adopted by the different crop insurance schemes.

1.   To protect the farmers against loans suffered by them due to crop failure.

2.   To fight against natural calamities such as drought, flood, cyclones, fire etc.

3.   To provide the required credit to farmer for season.

Different Crop Insurance Scheme:

In October 1965 the Government of India decided to introduce a Crop Insurance Bill and a Model Scheme of Crop Insurance in order to enable the States to introduce crop insurance if they so desired. In 1970, the draft Bill and the Model Scheme were referred to an Expert Committee headed by Dr. Dharm Narain.

There after flow of schemes continues to till today. These are enlisted below and their features are discussed in Table.

1.   First Crop Insurance Scheme, 1972

2.   Pilot Crop Insurance Scheme, 1979

3.   Comprehensive Crop Insurance Scheme, 1985

4.   National Agriculture Insurance Scheme (NAIS), 1999

5.   Agriculture Insurance Company of India Limited (AIC), 2003

6.   Pradhan Mantri Fasal Bima Yojna (PMFBY), 2016

Table: Different Crop Insurance Scheme

No	Scheme	Est. Year	Objectives or Coverage	Features
1.	First Crop Insurance Scheme	1972 Gujarat	Insurance of cotton, wheat and potato	It is based on Individual Area Approach. Upto 1978-79 covered only 3110 farmers with premium of Rs. 4.54 lakhs against claims of 37.88 lakh. So not successful
2.	Pilot Crop Insurance Scheme	1979	The scheme covered cereals, millets, oilseeds, cotton, potato, gram and barley. It covers 13 states with 6.27 farmers.	V. M. Dandekar Suggests Homogenous Area Approach. GIC & state government shared risk in the ratio of 2:1. The scheme a Premium of  Rs. 1.97 cr. against Claims of  1.57 crore
3.	Comprehensive Crop Insurance Scheme (CCIS)	1985	It was implemented on Homogeneous Area approach and was linked to short-term crop credit. It covers 15 states and 2 Union Territories (UT).	Premium & Claims were shared by Central & State Government in 2:1 ratio. The Scheme was optional to State Governments. Drawback of the scheme out of total claims ₹16.23 billion, Gujarat alone received ₹7.92 billion for one single crop, groundnut. It is replace by NAIS.
4	National Agriculture Insurance Scheme (NAIS)	1999	To provide insurance covered and financial support to the farmers during calamities, pests & diseases. To encourage the farmers to use progressive farming practices and higher technology in Agriculture. It covers 25 states & 2 UT.	Scheme is available to all farmers irrespective to their holding size. It covers all food crops such as cereals, pulses, oilseeds and others. Premium rates vary from 1.5 to 3.5%. It operates on the basis of area approach and no upper limit of insured amount.
5.	Agriculture Insurance Company of India Limited (AIC)	2003	To provide financial security to persons engaged in agriculture and allied activities. It covers 500 districts with 20 million farmers. To help in stabilizing farm incomes. Head office is at New Delhi.	It includes Weather Based Crop Insurance Scheme (WBCIS). It is under administrative control of Ministry of Finance, GoI. Initial paid up capital was Rs. 200 Cr. and contributed by GIC (35%), NABARD (40%) and 4 Public sector banks (35%: 8.75% each) Authorized share capital was Rs. 1500 Cr.
6.	Pradhan Mantri Fasal Bima Yojna (PMFBY)	2016	To provide insurance coverage and financial support to the farmers in the event of crop failure.	The scheme covers Kharif, rabi crops as well as annual commercial and horticultural crops. In addition to yield loss, it covers post harvest losses also.

PRADHAN MANTRI FASAL BIMA YOJNA (PMFBY)

In January 2016, NDA Government has launched a new crop scheme called Pradhan Mantri Fasal Bima Yojna (PMFBY) or Prime Minister’s Crop Insurance Scheme. It will replace NAIS and Modified NAIS. The new scheme will come into force the Kharif season starting in June this year. The theme of the scheme is ‘Minimum Premium, Maximum Insurance to Farmers’.

          The new insurance scheme would cost the government Rs 8,800 crore over the next three years, assuming that 50 per cent of farmers are covered. At present, with 23 per cent insurance cover, the Centre spends Rs 3,100 crore a year on crop insurance. The insurance amount covered will also not be capped and so also the premium rates.

Objectives:

1.   To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.

2.   To stabilize the income of farmers to ensure their continuance in farming.

3.   To encourage farmers to adopt innovative and modern agricultural practices.

4.   To ensure flow of credit to the agriculture sector.

Implementation Agency:

The Scheme shall be implemented through a multi-agency framework by selected insurance companies under the control of the

ü  Department of Agriculture,

ü  Cooperation & Farmers Welfare (DAC&FW),

ü  Ministry of Agriculture & Farmers Welfare (MoA&FW),

ü  Government of India (GOI) and

ü  The concerned State in co-ordination with various other agencies like Financial Institutions (Commercial Banks, Co-operative Banks, RRB’s), Government Departments (Agriculture, Co-operation, Horticulture, Statistics, Revenue, Panchayati Raj etc.)

Crops Covered:

The scheme covers Kharif, Rabi crops as well as annual commercial and horticultural crops. For Kharif crops the premium charged would be up to 2% of sum insured and for Rabi it is 1.5% of sum insured. For annual commercial and horticultural crops premium will be 5%.

Insurance:

There would be One insurance company for whole state. Private insurance companies join hands with Agriculture Insurance Company of India Limited (AIC) to implement this scheme.

Losses covered:

In addition to yield loss, it covers post harvest losses also. It also provides farm level assistance against different calamities.

          At the same time Losses arising out of following conditions shall be excluded. Certain examples are War & kindred perils, nuclear risks, riots, malicious damage, theft, grazed and/or destroyed by domestic and/or wild animals, In case of Post–Harvest losses the harvested crop bundled and heaped at a place before threshing, other preventable risks.

Use of Technology:

Scheme recommends mandatory use of remote sensing, smart phones for quick estimation of losses suffered to process the claims further.

Other Features:

The scheme aims to bring 50% farmers under purview of it within next 2 to 3 years. About 25% of the likely claims will be settled directly on farmers account. It prescribes only one premium rates for each season for all foodgrains, oilseeds and pulses etc.

Comparison with earlier crop insurance scheme:

1.   It is optional to loanee and non-loanee farmers and open to all farmers.

2.   It set lowest premium so far in insurance scheme. (Premium rate is lower than the NAIS).

3.   It provides full coverage of insurance.

4.   Also covers localized risks such as landslide, inundation etc. For first time inundation has been included.

5.   Covers post harvest coverage. NAIS did not cover it, while modified NAIS cover only for coastal regions.

6.   Only one premium rate per season.

7.   Use of technology is mandatory in it.

Some of the General Insurance companies provide crop insurance scheme are as follows.

1.   Agriculture Insurance Company of India Ltd.

2.   IFFCO-Tokio General Insurance Co. Ltd.

3.   Tata AIG General Insurance Co. Ltd.