Jaya slams new crop insurance

Chennai: Chief minister Jayal­a­lithaa on Monday expr­e­s­sed deep anguish at the Central governme­nt’s decision to withdr­aw Na­tional Agric­ul­ture Ins­urance Scheme (NA­IS) and replace it with a modified scheme at a hi­gher premium as it wo­uld subject farmers to an enormous financial burden.

In a letter written to the prime minister, Jaya­l­alithaa urged the Cen­tre to share the burden of the additional premium with the state gover­nment and encourage far­mers to insure their crops.

“The abrupt and sudden decision of the government of India to wit­hdraw the National Agriculture Insurance Sc­heme (NAIS) and rep­lace it with the Modified National Agriculture In­su­rance Scheme (MN­AIS)/Weather-Based Crop Insurance Scheme (WB­CIS) under the ne­wly introduced National Crop Insurance Progra­mme (NCIP) from rabi 2013-14 without proper consultation with stakeholders and in particular states, has come as a rude shock to farmers,” Jayalalithaa stated in the letter. 

She pointed out that in TN the state government helped farmers by exte­nding a subsidy of 45 to 50 per cent on the premium payable besides 50 per cent  of the crop loss compensation shareable with the Union government. “TN farmers will be suddenly subjected to an enorm­ous financial burden due to the steep increase in the crop ins­urance pre­m­­ium under the new pr­o­gramme,” the CM stated.

The introduction of the NCIP is expected to inc­rease the burden of premium on farmers manifold. NAIS guidelines sti­pulate premium level of 2 per cent to 3.5 per cent of the sum insured, dep­ending on the season and crop. The state presently extends 50 per cent premium subsidy, enabling the farmers to pay only 1per cent to 1.75 per cent of the sum insured.

“In the new NCIP the premium pay­able by the farmers inc­re­ases to 3.75 per cent and above un­der MNAIS, and to 4.8 per cent and above un­d­er WBCIS. With such hi­gh premia, I really doubt whether farmers will come forw­ard to ins­ure their crops and mitigate their ri­sks,” the chief minister pointed out.