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"Resolve differences over farm insurance''

Special Correspondent

Parliamentary committee asks Agriculture Ministry

NEW DELHI: The Parliamentary Standing Committee on Agriculture has asked the Agriculture Ministry to resolve its differences with the Planning Commission on the Modified National Agricultural Insurance Scheme.

In its 23rd report, tabled in Parliament on Tuesday, the committee suggested that the matter be resolved at the Union Cabinet level, if need be.

It said the Ministry submitted a proposal for the scheme to the Planning Commission in February 2005. But even after 14 months, the Commission had not approved the scheme, "which speaks volumes about the disinterest and the callous attitude" towards farmers, who do not get remunerative price for their crops.

The panel, chaired by Ramgopal Yadav, said the Commission wanted the insurance scheme to be shifted to the non-Plan side and favoured funding only the overhead component of the costs of the scheme.

The Commission supported the implementation of the proposed scheme on pilot basis in districts/States, which had the requisite data collection capability/infrastructure for obtaining feedback.

In view of the non-availability of data required to have actuarial calculations and there being the need for subsidy on premium, it could not be a Plan activity and should be under non-Plan, the committee said.

Therefore, in its totality, the scheme would not get through the Commission. The Ministry, however, said the dispensation would be a blow to efforts to insure more farmers.

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