"We are desirous of introducing a new crop insurance scheme to protect the farmers against both yield and price fluctuations. I would appreciate if your suggestions are sent to us by end of July," Singh said in the letter.
A Farmer Income Insurance Scheme (FIIS), introduced during 2003-04 on pilot basis in 22 districts of 14 states, was later dropped. This scheme aimed to protect farmers' incomes by integrating production with prices, he said.
Some states, on their request, have been allowed to continue to implement the National Agricultural Insurance Scheme (NAIS) during this year.
The NAIS was introduced in 1999-2000 to protect farmers against crop losses due to natural calamities like drought and floods. Premium rates under this scheme are highly subsidised and the responsibility for payment of claims over and above the amount collected as premium is shared equally by the centre and states.
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