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The Tamil Nadu government today suggested that the state (Tamil Nadu) and centre should equally divide the additional burden of premium under the National Crop Insurance Programme.
The state government also alleged that the National Crop Insurance Programme (NCIP) has been introduced by the Centre in a very hasty manner without any consultation with the stakeholders.
In a letter to the Prime Minister, Tamil Nadu Chief Minister J Jayalalithaa said, "The abrupt and sudden decision of the centre to withdraw the National Agriculture Insurance Scheme (NAIS) and replace it with the Modified National Agriculture Insurance Scheme (MNAIS) / Weather Based Crop Insurance Scheme (WBCIS) under the newly introduced National Crop Insurance Programme (NCIP) from Rabi 2013-2014 without proper consultation with the stakeholders, and in particular the States, has come as a rude shock to the farmers”.
The govt said the farmers are already facing acute hardship due to the severe drought that prevailed during 2012-13. This has further been compounded by the deficit rainfall (-33%) in the North-East Monsoon this year. At this juncture, the steep hike in the premium burden on the farming community will adversely affect agricultural prospects, the govt said, adding that it is unacceptable to them.
Jayalalithaa said that the Tamil Nadu govt helps the farmers by extending a subsidy of 45–50% on the premium payable, besides 50% of the crop loss compensation shareable with the Government of India over and above the premium collected.
The Centre's decision will increase the financial burden due to the steep increase in the crop insurance premium under the new programme, she said.
Jayalalithaa added that the state government is taking all efforts to encourage more and more farmers to get enrolled under crop insurance for which it extends 45-50% premium as subsidy, under the NAIS to all farmers, in addition to the meagre 5% subsidy extended only to small and marginal farmers by the Centre. As a result, the number of farmers insured under NAIS has increased from 1.01 lakh farmers in 2000-2001 to 9.76 lakh farmers in 2012-2013.
“The NCIP has been introduced by the Government of India in a very hasty manner, without any consultation with the stakeholders. The administrative instructions on the introduction of NCIP with effect from the current Rabi season were issued by the Government of India only on November 1, 2013, i.e. one month after the commencement of Rabi 2013-14. The state governments and the farmers have not been taken into confidence while introducing NCIP. The introduction of the NCIP would increase the burden of premium on the farmers of Tamil Nadu manifold,” said the Chief Minister.
She added that NAIS guidelines stipulate premium level of 2% to 3.5% of the sum insured, depending on the season and crop. The Government of Tamil Nadu extends 50% premium subsidy, enabling the farmers to pay only 1% to 1.75% of the sum insured.
In the new NCIP, the premium payable by the farmers increases to 3.75% and above under MNAIS, and to 4.8% and above under WBCIS. “With such high premiums, I really doubt whether farmers will come forward to insure their crops and mitigate their risks,” she said.
