However, sericulture is also a risky and vulnerable enterprise that faces many challenges such as climatic uncertainties, pest and disease outbreaks, market fluctuations, lack of infrastructure and technical support, etc. These factors can adversely affect the productivity and quality of silk cocoons and cause huge losses to the sericulturists.
To address these issues and provide financial security to the sericulturists, Uttarakhand has become the first state in India to launch a unique insurance scheme called 'Resham Keet Bima' or 'Silkworm Insurance'. The scheme was inaugurated by state agriculture minister Ganesh Joshi on March 10th 2023.
The main objective of the scheme is to protect the sericulturists from any unforeseen losses due to natural calamities, water scarcity, pest and disease attacks, theft or fire incidents that may damage their silkworm crops. The scheme also aims to encourage more farmers to adopt sericulture as a viable source of income and employment.
Under the scheme, each sericulturist will be insured for Rs 10 lakh per annum for a premium of Rs 500 only. The insurance cover will be valid for one year from the date of enrolment. The scheme will cover all stages of silkworm rearing from egg laying to cocoon harvesting. In case of any loss or damage to the silkworm crop due to any insured risk, the sericulturist will be compensated as per the norms prescribed by the insurance company.
The scheme is being implemented by Uttarakhand State Cooperative Bank Ltd (USCB) in collaboration with National Insurance Company Ltd (NICL). The USCB will act as an intermediary between the sericulturists and NICL and facilitate their enrolment, premium collection and claim settlement. The NICL will provide technical support and guidance for assessing the losses and disbursing compensation.
The scheme has been launched as a pilot project in five blocks of four districts namely Dehradun, Haridwar, Udham Singh Nagar and Nainital . In this phase, 200 sericulturists have been selected for availing insurance benefits under this scheme. Based on their feedback and performance evaluation, the scheme will be extended to other districts and blocks in future.
The Resham Keet Bima scheme is expected to boost confidence among existing sericulturists as well as attract new entrants into this sector. It will also help improve productivity and quality standards of silk production in Uttarakhand. Moreover, it will contribute towards achieving self-reliance and sustainability in silk industry and enhancing rural livelihoods in Uttarakhand.