Crop Risk Scheme May Be Extended

The proposed scheme is likely to be extended to more crops.

Mishra, in a letter to all MPs, has spelt out details about the scheme which is aimed at increasing production and productivity of Indian agriculture.

The scheme is especially aimed at helping small and marginal farmers, giving them security for loss of crops.

Under the proposed scheme, they will have to pay a premium of two per cent for crops like rice, wheat and millet and a premium of one per cent for oilseeds.

Fifty per cent of the premium for small and marginal farmers will be subsidies, which will be incurred by both state and Central government together.

 

The letter says as against the total crop production of Rs 98,235 crore, about Rs 4,135 crore worth of produce get destroyed because of natural calamities.

In view of such loss, the ministry is planning to extend the ambit of the present crop insurance scheme which has been in operation since 1985.

As against the current policy of extending the facilities to only farmers who have taken loan from various institutions, the new scheme proposes to extend the benefits to farmers who have not taken any loans.

The state governments are free to accept the scheme but once they accept, the scheme will apply to all the farmers residing in the area.

The new scheme is expected to bring about 80.17 million farmers, most of them small and marginal ones, into the ambit.

The agriculture minister has suggested that a cess be charged from the farmers to create a sense of participation and to augment the viability of the scheme.

The recommended cess could be Rs 40 a hectare on irrigated land and Rs 20 on unirrigated land.

The small and marginal farmers are proposed to be exempted from it.