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Government plans new crop insurance scheme

Special Correspondent

Insurance payments being delayed now, says Minister


  • Farmers now have to wait for over a year for money
  • New scheme to ensure timely payment of insurance

    GULBARGA: The Government is considering the introduction of a new crop insurance scheme to overcome the problem of delayed payment to farmers who lose their crops, Agriculture Minister Bandeppa Kashempur has said.

    Mr. Kashempur, who arrived here on Saturday to acquaint himself with the extent of crop loss caused by floods, told presspersons that the Government would explore the possibility of introducing a foolproof scheme to ensure timely payment of insurance.

    Expressing dissatisfaction over the mode adopted by insurance companies for assessing crop damage, Mr. Kashempur said farmers now had to wait for more than a year to get the insurance amount. Immediate payment would enable farmers to plant a second crop or repay loans.

    When there was not much delay in payment of insurance under various other schemes offered by insurance companies, why should payment to farmers be delayed, Mr. Kashempur asked.

    The existing crop insurance scheme launched by the Centre also had many other shortcomings, which the new scheme would help overcome, he said. A major reason for the delay in payment of crop insurance was the severe shortage of staff in insurance companies to handle the work involved.

    He said farmers who cultivate short-duration crops such as green gram and black gram and go in for bi-seasonal crops such as red gram as a second crop are being deprived of the insurance benefit if the short-duration crops failed.

    He said would hold discussions with senior officials of the Agriculture Department and then with Chief Minister H.D. Kumaraswamy and Deputy Chief Minister B.S. Yediyurappa on the need for a new scheme.

    He said farmers in the State were yet to get insurance for crops lost in the 2005-06 kharif and rabi seasons. Payment had been made only for kharif crops lost in 2004-05. Payment for rabi crops lost that year was to be cleared.

    Extension sought

    The Minister said that the Government had also apprised Union Agriculture Minister Sharad Pawar of the need to extend the last date for payment of crop insurance premiums to August 31 in view of the delayed rainfall. Farmers were yet to complete sowing.

    He and the Chief Minister met Mr. Pawar and made the request during their recent visit to New Delhi. As of now, the last date for paying the premium was July 31, he said.

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