Tamil Nadu - Madurai   

“Switch to modified crop insurance”

MADURAI: Will the State Government opt for Modified National Agricultural Insurance Scheme – “a more farmer-friendly” crop insurance scheme – that would greatly benefit the farmers in the event of crop failure?

The modified scheme was introduced by the Union Ministry of Agriculture with effect from 2010-11 Rabi season on a pilot basis. The Union Government wanted to implement it in 50 districts in the country. But, it could be introduced only in 34 districts in 12 States. Tamil Nadu Government was not part of it.

“ … but Government of Tamil Nadu has not yet opted for the scheme for its implementation,” the Union Minister for Agriculture and Food Processing Industries, Sharad Pawar, said in a letter dated March 21, 2011, addressed to Virudhunagar MP B. Manicka Tagore.

Based on a news report on the complaints by farmers of Madurai district that National Agricultural Insurance Scheme (NAIS) was not farmer-friendly, Mr. Tagore had urged the Union Minister to take steps to set right the crop insurance scheme.

The farmers had complained that the NAIS did not work in the desired way for the farmers with regard to compensation.

They said that the notified area for the insurance scheme though reduced from district-level to block-level did not benefit them.

Individual farmers got compensation only if the entire notified area faced crop loss. They wanted the notified area to be reduced to firka-level.

Mr. Tagore wanted to know why the Agriculture Department was advocating such an insurance scheme that did not benefit the poor farmers. Responding to the Virudhunagar MP, Mr. Pawar said that the Union Ministry had modified the NAIS, based on the experience gained during its implementation since Rabi 2010-11.

Mr. Pawar said that the unit area of the insurance had been reduced to the village panchayat-level for major crops.

On the other salient features, the Union Minister said that the actuarial premium with subsidy in premium for farmers ranged from 40 per cent to 75 per cent; and on account payment upto 25 per cent, advance of likely claims was possible, as immediate relief.

He further added that more proficient basis for calculation of threshold yield was implemented and the insurance coverage included prevented sowing/planting risk and post harvest losses due to cyclone in coastal areas.

Besides, it had the minimum indemnity level of 70 per cent to 60 per cent, he said.

Farmers wanted the State Government to act swiftly to switch over to the Modified NAIS as the irrigation for paddy cultivation across the State has already begun.

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