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.
