⇱ Index page

The Internationalist Archive

Nayla Khwaja is an independent journalist who covers stories of land-rights, community resilience, environment, and gendered violence. Through writing and visual storytelling, she attempts to bring marginalised voices to the centre.

For issue #160 of The Internationalist, she continues her report on how relentless climate disasters and political instability are devastating India's apple heartland and the livelihoods of millions dependent on it. 

To read Part 1, click here.

CLIMATE INSURANCE 

Apple is the cash crop in J&K and Himachal, and their economies are largely dependent on apples rather than other insurance-eligible crops, such as wheat and rice, that are dominant in other regions of India. Hence, from time to time, Kashmir’s farmers have been agitating for a fully functional Crop Insurance Scheme. 

The hope is that this horticulture-specific insurance scheme for apples would cover the major climate risks faced by apple-growing regions. Since apples are perennial, a damaged tree affects income for 10–15 years, unlike wheat/paddy, where losses recover next season. So, a good scheme must cover tree loss, graft death, orchard rehabilitation, labour cost, cost of abandoned produce, replanting costs, etc. This is the single biggest gap today, and since apple regions are high-risk, insurers will charge high premiums unless the government steps in.

A structured insurance scheme would also reduce the financial shock of climate disasters; instead of sinking into debt after hail/flood, farmers will get payouts that help them survive the season. It would prevent forced migration and orchard abandonment, as the loss of a harvest often forces workers to leave Kashmir / Himachal Pradesh for cities. Insurance slows this collapse, offering stable rural economies, which means money flows back into local markets, labour hires, cold storage, and transport. Since small orchardists are the most exposed, insurance would act as a safety net.

The state of Himachal Pradesh has in place “Restructured Weather Based Crop Insurance Scheme” (RWBCIS), but it compensates only for defined weather events (temperature, rainfall deviation), does not cover flash floods, landslides, road disruptions, orchard damage, tree loss, payouts hardly match real losses, etc. So Himachal, like Kashmir, does not have an actual working policy that protects apple growers from climate shocks.

Additionally, Kashmir’s crisis is exacerbated due to the changing climate; this is only made worse by political neglect. Before 2019, when Article 370 of the Indian Constitution granted J&K an autonomous status, horticulture policy, procurement, crop relief, and market regulations were handled locally. Post the stripping of 370, decisions are made in New Delhi or by bureaucrats, not elected representatives. 

Since the Centre controls import policies, the duty-free Iranian/Afghan apple imports exploded after 2019, severely undercutting local prices. After 370, the promised development hasn’t materialised in J&K. Not a single functioning insurance scheme covers apples, disaster relief is tokenistic, and private insurers refuse to enter a conflict-prone Union Territory without state subsidies.

We spoke to the apple farmers from 12 villages, and their decade-long demands focus on implementing a comprehensive Crop Insurance Scheme, setting a Minimum Support Price (MSP) for horticulture crops, and imposing a 100% import duty on foreign apples, particularly from Iran and Afghanistan. While J&K held its first assembly election in 2024, and this issue is mentioned in almost every party’s manifesto, nothing has been done on the ground even after a year, despite the apple industry providing employment for 3.5 million people and contributing 9.5% to the region’s GDP. 

Farmers hit by the flood, however, are in urgent need of relief, as this year's destruction impacts next year’s planting and production, leaving them vulnerable to economic marginalisation.

Signs of water supply promised by the Indian Govt in a Shopian village. Water supply to the apple orchards, however, remains an unresolved issue.

Recurring climate shocks have exacerbated these struggles. Orchardist Mohsin, from Shopian district, who was out of station, rushed home to help his family salvage what remained when floods hit the region in September of this year. “A box of delicious apples, which used to sell for ₹1300-1500, is now only getting ₹150-180,” he says, disheartened. The production cost alone ranges from ₹400-600, making this year’s harvest a financial disaster for many.

Zahoor Ahmad Tantray told us that the region’s apple industry, a key economic driver, was showing signs of recovery in 2023-24 after several difficult years, with hopes of a fruitful season. “However, severe hailstorms and floods, with a lack of adequate policy and climate insurance, have left farmers struggling,” he said.

Muhammad Ashraf Wani, the President of Shopian Fruit Mandi, urges the government to take immediate and decisive steps to protect the apple industry. "We don’t say imports should stop completely, but they must be regulated so that the rates are not impacted," he explained. 

This sentiment is shared widely among apple growers that their livelihoods are slipping away due to the influx of cheaper foreign apples. Wani specifically advocates for a higher percentage of import duty on foreign apples, arguing it would shield local producers from unfair competition, particularly as they struggle against additional challenges like climate disasters without any climate insurance or policies in place. “Due to reduced import duty, our farmers are forced to sell their produce for a song,” he commented on the dire situation of apple growers in the region.

BUT CROP INSURANCES EXIST?

"Bohot masle hain, pehla import, crop insurance aur MSP nahi hai, subsidies/schemes theek se batayi nahi jaati hain. Ab dekhiye toofan aa gaya, self aa gaya, sab barbaad ho gaya. Ye hain hamari pareshaniyaan, sunne waala koi nahi," (There are many problems, first imports, crop insurances and MSP don’t exist, and then [government] subsidies and schemes are not told to us properly. Now the storm and flood have destroyed everything. These are our worries, but there is no one to listen) lamented Naseer Ahmed, an apple farmer from Kulgam district.

India ranks as the seventh-most vulnerable country to climate change, according to the Global Climate Risk Index 2021. Without effective mitigation strategies, the nation could face an annual GDP contraction of 3 to 10 percent due to climate-related disruptions. The economic slowdown caused by unpredictable weather patterns is likely to hit agricultural communities the hardest, with a disproportionate burden falling on the rural and urban poor.

Although the only sub-segment of climate insurance that India’s insurance market rolls out is agricultural crop insurance. With 65 crore farmers, most of whom rely on monsoon, vulnerable to unseasonal rains/storms and pest attacks, strategically promoting and effectively implementing crop insurance can have a huge impact on their livelihoods and well-being. Over 55 million Indian farmers have crop-insurance under the Pradhan Mantri Fasal Bima Yojana (Prime Minister’s Crop Insurance Scheme) (PMSBY) and under the interim budget of 2024-25, the Pradhan Mantri Kisan Samman Yojana (Prime Minister’s Farmer Dignity Scheme) talks about providing crop insurance for over 4 crore farmers, but this doesn’t extend to the horticulture crops like apples, peaches, dry fruits, etc.

CLIMATE HYPOCRISY 

Globally, climate insurance has been a major topic at climate forums like COP (Conference of the Parties) meetings, especially with increasing climate-related disasters. 

In November 2023, at COP28 in Dubai, India's negotiators demanded that wealthy nations pay $100 billion annually in climate finance, i.e., a "Loss and Damage Fund" to compensate vulnerable nations for climate catastrophes they did not cause. India's Environment Minister declared, "Climate justice demands that those who contributed most to the crisis must support those suffering most from its impacts." At COP29 in Baku (2024), India escalated its demands for increased climate finance and insurance mechanisms designed to shield small farmers in climate-vulnerable regions. The Indian delegation presented case studies of climate disasters affecting agriculture to push for grant-based support, not loans. At COP30 in Brazil (2025), India reiterated its previous demands, and the final decision established the "Santiago Network" to provide technical assistance, although without securing a new, separate funding source.

At home in Kashmir and Himachal, with a decade of climate disasters, horticulture crops remain excluded from the Prime Minister’s Crop Insurance Scheme or PMFBY, touted as India's flagship crop insurance scheme. The government announced a Weather-Based Crop Insurance Scheme for horticulture, "by March 2025." It is now November, and farmers are still waiting for final implementation.

"India goes to COP and demands climate finance for farmers who are suffering," said Raja Muzaffar Bhatt, a Kashmir-based climate and Right to Information activist. "But when our farmers ask for that same support domestically, they receive silence."

Climate activist Harjeet Singh explains, “Annual COP conferences should strengthen accountability, pushing for increased contributions from wealthy nations through direct grants rather than market-based insurance, which often fails to fully protect the most affected populations.”

Domestically, India's insurance penetration rate (combining both life and non-life insurance) was 4.2% in 2021, lower than the global average of 7%. The Insurance Regulatory and Development Authority of India (IRDAI) aims to close this protection gap, with plans to ensure that by 2047, a larger segment of citizens and enterprises are covered under appropriate insurance policies.

However, the aim to expand crop insurance coverage to cover natural disasters, while laudable, cannot be achieved unless insurance becomes more accessible and affordable, says Professor Tariq Rasool from Sher-e-Kashmir University of Agricultural Sciences and Technology of Kashmir.

“We are in the middle of a climate crisis," said activist Raja Muzaffar Bhatt. "These events are not just acts of nature. With climate disruptions becoming more frequent, we need robust risk management and pricing strategies for regions vulnerable to environmental damage.”

Climate activist Harjeet Singh further explains, “In India, evidence suggests that existing insurance programmes have not fully covered the losses of farmers, who remain under-compensated after extreme weather events. Insurance companies often profit from public subsidies while delivering minimal payouts, raising concerns about the feasibility of insurance as climate impacts worsen.”

A 2022 study of 900 apple growers in Jammu and Kashmir’s Baramulla and Budgam districts revealed that while most are willing to adopt the scheme, they find the current premium unaffordable. Key barriers include lack of awareness, basis risk, and distrust in insurers. We visited two different fruit markets Sopore and Shopian, and spoke to farmers from multiple villages. While the government offered temporary alternatives like the Market Intervention Scheme (MIS) for C-grade apples, many farmers remain unaware of these schemes, and not just local mandi leaders, but the officials also said that MIS has not been implemented in years, leaving the apple industry exposed to volatile pricing without a stable support system.

Harjeet suggests, “Strong regulatory oversight is essential to ensure that public funding genuinely supports farmers through social protection schemes, rather than subsidising private profits.” 

“In essence, crop/climate insurance isn't just a safety net; it's a lifeline,” horticulture officials told us. However, an industry veteran who wishes to stay anonymous told us, “aise bohot baar crop insurance ke waade kiye gaye hain, ye pehli baar nahi hai.” (Many promises like these crop insurances have been made before, this is not the first time.)

The Internationalist Archive