Chief Minister Naveen Patnaik on Wednesday urged Union Agriculture Minister Sharad Pawar to keep the premium rate of the proposed National Crop Insurance Programme (NCIP) at the level of the National Agriculture Insurance Scheme (NAIS) to make it affordable for farmers in the State.
In a letter to the Union Minister, Patnaik said, “It is estimated that the premium payable (under NCIP) by the farmers, will be much higher than which have been charges under NAIS. The Government of India may introduce the new scheme on crop insurance while keeping the premium rate at the level of NAIS, since poor farmers cannot buy insurance at high cost.” “This is very important since crop loan is being advanced to the farmers at the effective interest rate of 2 per cent with subvention being provided by the State Government,” the letter added.
Notably, the NAIS was being implemented since Rabi 1999-2000, where the premium rates were charged @2.5 per cent and 2 per cent for paddy for Khariff and Rabi respectively, from the farmers.
Patnaik further reasoned that the Modified National Agriculture Insurance Scheme and Weather Based Crop Insurance Scheme were implemented in Odisha on pilot basis for past five years which were not accepted by the farmers either because of high rate of premium or unattractive pay out structure.
“The farmer of Odisha had opposed high rate of premium under MNAIS during Khariff 2013, for which the scheme had to be withdrawn by the state government from six districts after notification,” the letter read.