General Insurance Corporation (GIC) may float a separate subsidiary for crop insurance business, a government official said.
The proposed entity may be called Bharat Krishi Bima Nigam.
Addressing a round-table on the national agriculture policy organised by the Federation of Indian Chambers of Commerce and Industry, Union agriculture minister Som Pal said the government will shortly come out with a comprehensive insurance policy scheme for farmers.
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He said the scheme has already received the Prime Minister's approval and is likely to be cleared by the cabinet soon, he said.
Som Pal pointed out that the new policy is aimed at optimising land use and recovery. The ministry will shortly call a meeting of the Chief Ministers of southern states to discuss the issue of land consolidation.
The minister said Punjab and Harman have set good examples in land consolidation, but some states are behind on the matter. "Whatever administrative expenses that are incurred for conducting the studies and surveys etc for land consolidation will be reimbursed by the Central government," he said.
He also pointed out that agriculture must be on the basis of waste management and that there is a need to develop command area development.
Besides, excise levies on drip and sprinkler irrigation systems should be done away with, the minister felt.