Scope of Incorporation of Pradhan Mantri Fasal Bima Yojana (PMFBY) and Weather Based Crop Insurance Scheme (WBCIS) in “Tree Investment Ventures” in India

Abstract

Purpose: Tree Investment Ventures are a special type of commercial ventures, where in an individual or a group of individuals or any corporation owns, hires or leases a large piece of land with an intention of sowing the saplings of those trees which fetches a very huge monetary value after the elapse of 20- 25 years. They would pool the minimum investment from the investors, charged on the basis of per sapling like teak wood, rose wood, mahagani, etc and they would assure the investors a huge lump sum once the tree grows to the pre-determined size which attracts a huge monetary value by commercially selling it. The purpose of study is to know whether these Tree Investments are covered under any Government sponsored Crop Insurance Scheme.

Methodology: The data which is purely secondary is collected from various websites which gives information on Tree Investment Ventures as well as information on PMFBY and WBCIS and inferences were drawn based on the data authenticated in the websites and other web sources.

Design and Analysis: The research is exploratory research and has employed secondary data for the purpose of analysis. The study doesn’t use any statistical tools for inferences as it confined only to know whether Tree Investment Ventures are covered under Govt. Sponsored Crop Insurance Schemes of PMFBY and WBCIS.

Results: Upon thorough study it was found that, in India , such commercially grown trees are not covered under the Central Government Crop Insurance Schemes such as Pradhan Mantri Fasal Bima Yojana (PMFBY) and Whether Based Crop Insurance Scheme (WBCIS).it was also found from the studies that PMFBY and WBCIS at present is available only to Mango Trees  and investors who has invested in such Tree Investment Ventures are running under huge risk as their investment could be lost if some damage occurs to the trees due to natural calamities or any man made mishaps and hence there is scope of bringing such Tree Investment Ventures under the purview of PMFBY and WBCIS and upon implementing such a government sponsored insurance backup, it will be a boosting factor for attracting much more investments under Tree Investment Ventures.

Originality/Value: The research is interesting as the researchers are curious about knowing whether Tree Investment Ventures which attracts huge investments from investors are covered under any Govt. Sponsored Crop Insurance Scheme or not? The secondary data which has not been used in any research so far is used in this research study going through various websites and periodicals which gives input about PMFBY AND WBCIS in India.