Plea to retain subsidy on crop insurance

Vadde Sobhanadreeswara Rao, the minister for agriculture, urged the central government to retain the subsidy provision in crop insurance premium at the present rate of 20 per cent.

According to national crop insurance policy formulated by the centre, the subsidy being jointly provided by the state and the central governments would be completely removed after 2004-05.

The minister said that farmers still needed the government's support in regard to premium payment as they were not in a position to arrange the entire amount on their own.

"The crop insurance scheme proved to be very beneficial to the farmers of Andhra Pradesh , who frequently undergo either drought or other natural calamities like cyclones. Farmers could get Rs 221 crore as compensation from insurance companies in 2002-03 which is the highest ever amount received by AP farmers in a single year," the minister stated.

According to the central policy, the government subsidy will be reduced by 10 per cent each year which will come down to 10 per cent of the total premium in the year 2004-05.

The minister said that farm mechanisation was one of the priority areas wherein the government was actively involved.

So far 30,000 units, such as tractors and other implements, had been provided to farmers with Rs 16 crore expenditure in the last five years, he added.