Lok Sabha Debates
Need To Share The Additional Burden Of Premium Over And Above 2% Of The Sum Insured ... on 14 July, 2014
Sixteenth Loksabha an> Title: Need to share the additional burden of premium over and above 2% of the sum insured under the National Crop Insurance Programme equally with Government of Tamil Nadu.
DR. P. VENUGOPA.L (TIRUVALLUR): Crop insurance is the only trust-worthy assurance to farmers against vagaries of nature. However, the decision of the central Government to withdraw the National Agriculture Insurance Scheme (NAIS) and replace it with the National Crop Insurance Programme (NCIP) from Rabi crop of 2013 came as a big shock to farmers. While Central Government extends a meagre 5% subsidy only to small and marginal farmers, Tamil Nadu Government extends 45-50% premium as subsidy under the NAIS to all farmers. Under the old scheme, farmers paid only 1% to 1.75% of the sum insured as against 3.5% under the new scheme. This high premium will discourage farmers from insuring crops. Tamil Nadu government has demanded that the Central Government should share the additional burden of premium over and above 2% of the sum insured under the National Crop Insurance Programme equally with the state. I appeal to the Government to announce the acceptance of this proposal without any delay.