Batting for a new and cheap crop insurance scheme, chief minister Naveen Patnaik on Wednesday said the premium rate of the proposed National Crop Insurance Programme (NCIP) should be at the level of National Agriculture Insurance Scheme (NAIS) to make it affordable for farmers in the state.
"It is suggested that the Government of India may introduce the new scheme on crop insurance while keeping the premium rate at the level of NAIS since the poor farmers cannot buy insurance at that high cost," Naveen said in a letter to Union agriculture minister Sharad Pawar. "This is very important since crop loan is being advanced to farmers at the effective rate of 2% with interest subvention being provided by the state government," he added.
Stating that the premium payable under NCIP by farmers was estimated to be much higher than that has been charged under NAIS, Naveen said NAIS was being implemented since rabi 1999-2000, where the premium rates were charged at the rate of 2.5% and 2% for paddy for kharif and rabi respectively.
The CM also said the Modified National Agriculture Insurance Scheme (MNAIS) and Weather Based Crop Insurance Scheme (WBCIS) were implemented in Odisha on pilot basis for past five years but were not accepted by farmers either because of high rate of premium or unattractive pay out structure.
The farmers of Odisha had opposed high rate of premium under MNAIS during kharif 2013, for which the scheme had to be withdrawn by the state government from six districts after notification, he added.
"It is suggested that the Government of India may introduce the new scheme on crop insurance while keeping the premium rate at the level of NAIS since the poor farmers cannot buy insurance at that high cost," Naveen said in a letter to Union agriculture minister Sharad Pawar. "This is very important since crop loan is being advanced to farmers at the effective rate of 2% with interest subvention being provided by the state government," he added.
Stating that the premium payable under NCIP by farmers was estimated to be much higher than that has been charged under NAIS, Naveen said NAIS was being implemented since rabi 1999-2000, where the premium rates were charged at the rate of 2.5% and 2% for paddy for kharif and rabi respectively.
The CM also said the Modified National Agriculture Insurance Scheme (MNAIS) and Weather Based Crop Insurance Scheme (WBCIS) were implemented in Odisha on pilot basis for past five years but were not accepted by farmers either because of high rate of premium or unattractive pay out structure.
The farmers of Odisha had opposed high rate of premium under MNAIS during kharif 2013, for which the scheme had to be withdrawn by the state government from six districts after notification, he added.
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