Srinagar, Feb 05 (KNO): Jammu and Kashmir government on Thursday said it has provided around 60 lakh rupees so far as compensation for the farmers who suffered damage due to hailstorm and incessant rains in J&K last year.
In a written reply to the question tabled by MLA Gh Mohiuddin Mir, Minister for Agriculture Javid Dar said that the horticulture sector is considered the backbone of JKUT's economy, as about 35 lakh people (7.5 lakh families) are associated with this sector, contributing around 8% to the GSDP.
"The sector generates approx. Rs 10,000 crore annual income and provides major employment opportunities (1 hectare of orchard area generates about 400 mar 400 man-days per year," the minister said, as reported by the news agency—Kashmir News Observer (KNO).
Dar said the horticulture industry suffered losses due to hailstorms in June 2025 (only Shopian district) and recent floods during September 2025, and the compensation is paid as per SDRF/NDRF norms.
He said that 201 farmers faced losses on around 12.83 hectares of land due to a hailstorm and were given compensation of 8.12 lakh rupees, while due to incessant rains last year in August, around 590 hectares were affected and 2,179 families were impacted, following which 51.43 lakh rupees were distributed as compensation so far.
The minister said the government has already initiated a restructured Weather-Based Crop Insurance scheme for major horticulture crops, including apple and saffron for the Kashmir division, and mango, litchi, and saffron (Kishtwar district only) in Jammu division.
Dar said tender for the same has been invited from the empanelled insurance companies (by the government), and finalisation is in process.
"Four bids from the empanelled insurance companies—namely Agriculture Insurance Company, TATA AIG, Reliance General, and Iffco-Tokio—have been received for apple and saffron crops in Kashmir, and five bids from the same companies—Agriculture Insurance Company, TATA AIG, Reliance General, Iffco-Tokio, and Chola MS—have been received for mango, litchi, and saffron crops in Jammu," the minister informed. "After evaluating the bids at the premium rates quoted by the companies, the Agriculture Insurance Company and TATA AIG have been identified for three clusters in Kashmir division and one cluster in Jammu division, respectively."
He added that the technical and financial bids have been evaluated, and the final decision on the recommendation of the Bid Opening and Evaluation Committee shall be taken in a few days—(KNO)