Naveen asks Pawar to make crop insurance premium affordable

Seeking a new and cheap crop insurance scheme, Odisha Chief Minister Naveen Patnaik today said the premium rate of the proposed National Crop Insurance Programme (NCIP) should be at the level of the National Agriculture Insurance Scheme (NAIS) to make it affordable for farmers in the state.
"It is suggested that the Government of India may introduce the new scheme on crop insurance while keeping the premium rate at the level of NAIS since the poor farmers cannot buy insurance at that high cost," Patnaik said in a letter to Union Agriculture Minister Sharad Pawar.
Patnaik said, "It is estimated that the premium payable (under NCIP) by the farmers, will be much higher than that has been charged under NAIS."

Stating that this is very important since crop loan is being advanced to the farmers at the effective interest rate of 2 per cent with subvention being provided by the state government, the Chief Minister pointed out that the NAIS was being implemented since Rabi 1999-2000, where the premium rates were charged at the rate of 2.5 per cent and 2 per cent for paddy for Khariff and Rabi respectively.
Patnaik also said that the Modified National Agriculture Insurance Scheme (MNAIS) and Weather Based Crop Insurance Scheme (WBCIS) were implemented in Odisha on pilot basis for past five years which were not accepted by the farmers either because of high rate of premium or unattractive pay out structure.

The farmers of Odisha had opposed high rate of premium under MNAIS during Khariff 2013, for which the scheme had to be withdrawn by the state government from six districts after notification, the letter said.