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Chief Minister Seeks to Carry Crop Insurance Premium Burden

Chief Minister Seeks to Carry Crop Insurance Premium Burden

08 January 2014

INDIA - Tamil Nadu chief minister recently recommended the Centre and state government carry the premium burden of over and above 2 per cent of the sum insured under the National Crop Insurance Programme instead of forcing farmers to pay it.

In a letter to Prime Minister Manmohan Singh, the chief minister J Jayalalithaa blamed the Centre for replacing the National Agriculture Insurance Scheme with Modified National Agriculture Insurance Scheme/Weather Based Crop Insurance Scheme (WBCIS) without consulting the state governments and stakeholders, according to The Times of India.

"In Tamil Nadu, the state government extends subsidy of 45 to 50% on the premium payable under the National Crop Insurance Scheme besides 50% of the crop loss compensation. But by implementing the new insurance scheme from the 2013-14 rabi season, the government has added to the burden of the farmers," the chief minister said.

By extending 50% subsidy, the state government has made the farmers pay only 1 to 1.75% of the sum insured. But with the new insurance scheme, the premium payable increases to 3.75% and 4.8% under the WBCIS, according to Jayalalithaa.

"I really doubt whether farmers will come forward to insure their crops," the chief minister said.

Citing the failure of two successive monsoons, the chief minister said the steep hike in premium would adversely affect the agricultural prospects and was totally unacceptable to her government.

TheCropSite News Desk



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