Chief Minister Naveen Patnaik has urged Prime Minister Narendra Modi to sort out the genuine problems faced by farmers in connection with the implementation of the National Crop Insurance Programme (NCIP)

Writing his first ever letter to the new Prime Minister, Patnaik has offered his constructive support to the Central Government for promoting the agenda of accelerating socially inclusive growth and delivery of good governance.  Patnaik urged upon the Prime Minister to review the decision regarding implementation of the NCIP and requested him to introduce a new scheme on crop insurance while keeping the premium rate at the level of the National Agricultural Insurance Scheme (NAIS).

Patnaik said that a number of States have been advancing crop loans to the farming community at a nominal rate of interest against the decision of the Union Government to charge 7 per cent interest rate of such loans. However, the Odisha Government has been providing such loans at 2 per cent rate of interest.

Under the NAIS, the farmers were charged nominal premium to the extent of a maximum of 2.5 per cent for insuring their crops against natural calamities and other hazards and the scheme was widely accepted by farmers.

However, the NCIP has replaced the NAIS and the same has been introduced from Rabi season 2013-14. Odisha following the NCIP guidelines called quotations from the insurance companies and found in some districts, where paddy is the main crop, the l1 quote was as high as 22 per cent.

Under this condition, if the premium is capped at 11 per cent as per guidelines, the sum assured for the farmers would have been halved and a farmer would be paying a premium of 5 per cent on the sum assured in place of maximum 2.5 per cent charged earlier on the entire loan component (cent percent sum assured under Khariff NAIS), said Patnaik. The operational guidelines mention that if a State Government desires, the premium can be brought down to a minimal level, for which subsidy from the Union Government would not be available.

Patnaik said in his letter that Odisha is calamities-prone State. So, the farmers have no other options than to insure the crops against the natural calamities, and under the NCIP they are forced to pay a very high premium rate. And now agriculture is becoming less viable for a variety of reasons and an inappropriate insurance policy would create an additional obstacle, Patnaik said.

Naveen reviews issues to be taken up with Modi

Chief Minister Naveen Patnaik on Friday reviewed several important issues that need to be taken up with Prime Minister Narendra Modi and the Union Ministers at the Odisha Bhavan in New Delhi. Notably, Patnaik is on a trip to Delhi where he will meet Modi and several Union Ministers and discuss with them crucial issues concerning the interest of the State.

The review covered issues relating to different Union Ministries/departments including Finance, Home, Railways, Transport, Urban Development and Rural Development.

Patnaik highlighted a few significant issues to be taken up on an urgent basis. The Chief Minister is scheduled to attend a BJD Parliamentary party meeting as well, where he will meet all party MPs in lok Sabha and Rajya Sabha. His meetings in Delhi are aimed at accelerating inclusive socio-economic development of the State.