Tamil Nadu CM announces new crop insurance scheme
The indemnity level for nine districts which are most affected in the State had been increased to 60 to 70 per cent resulting in more compensation.
Chennai: Chief Minister J. Jayalalithaa on Friday said she had ordered the implementation of the crop insurance scheme brought by the Centre with the state government’s contribution.
As per the scheme, the calculations to estimate the losses would be done at the village level and this would lead to more accurate calculation of the crop losses and farmers could get proper compensation, she said.
So far, the compensation was given based on the loss of yield, but as per the new crop insurance scheme, non-germination of seeds, circumstances in which transplanting could not be done and natural calamities from the period of sowing to harvesting would be taken into account and all the losses would be compensated, the Chief Minister said.
The indemnity level for nine districts which are most affected in the State had been increased to 60 to 70 per cent resulting in more compensation. The farmers should pay a premium of 1.5 per cent for the cultivation season from October to March (Rabi) and two per cent for cultivation from April to September (Kharif).
The Central and State governments would share the remaining amount equally (50:50), she said.
The state which was paying Rs 40 crore per year for crop insurance would have to pay Rs 500 crore annually, as per the existing number of farmers who had registered under the scheme. If more farmers join the scheme, the insurance premium to be given by the State government would increase, she said.
The existing insurance scheme would continue for coconut farmers, the Chief Minister said and added that tender would be sought from the insurance companies recognised by the Centre for implementing the crop insurance scheme.