It aims at protecting the growers from the risks such as yield loss, pest attacks and income decline caused by fall in prices through crop insurance mechanism, thereby stabilizing income of growers to ensure their sustainability.
It is available only to plantation crops, for which crop insurance can no longer be availed from PMFBY.
The duration of the pilot scheme shall be one crop cycle commencing from the year 2016- 17 which may spread over 2 years.
RISPC is an improved form of the Price Stabilization Fund (PSF) Scheme which was closed in 2013.
It covers small growers of Rubber, Tea, Coffee (Robusta and Arabica), Tobacco and Cardamom having 10 ha or less landholding.
The scheme is compulsory for growers registered with the respective Commodity Boards (CBs) and it is implemented on pilot basis in 7 states.
The scheme will operate on the principle of ‘Area Approach’ and Commodity Board in consultation with the concerned State Government shall designate an area as Insurance Unit (IU), which can be a village panchayat or any other equivalent unit.
Scheme will cover income loss arising out of yield loss due to non-preventable risks viz. drought, dry spells, flood, pest and diseases, hail storm etc and price fluctuation due to fall in international/domestic prices below the average price of last 5 years excluding the current year.
Losses arising out of war and nuclear risk, malicious damage and other preventable risks are excluded.