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| Plantation insurance scheme to be launched soon | |||
| The Indian government is set to launch a Rs7.3 billion (US$158 million) crop insurance scheme for the plantation sector, most likely in the Union Budget to be unveiled today (26 February), reports the local media. Under the proposed scheme, the central government could provide a subsidy amounting to half of the insurance premium, while the plantation growers will bear the remaining half. This means that the scheme would need budgetary support of over Rs3.5 billion. The total plantation area covered under the scheme is around 2.3 million hectares and the insurance scheme is for a five-year period. While the country already has a National Agriculture Insurance Scheme (NAIS) for crop insurance, the Commerce Ministry wants a separate insurance scheme for plantation crops to help plantation farmers fetch a better price for their produce, including their exports, by taking more risks and maintaining or increasing their cultivation area. The plantation sector is regarded as crucial because it employs 1.7 million workers and sustains 1.5 million small growers. Plantation crops constitute around 3% of India's exports. Last-minute talks at central and state-level are being held on the scheme to decide funding of the premium subsidy. The Agriculture and Finance Ministries want the premium subsidy to be borne equally (25% each) by the central government and the states because they see agriculture as a state issue. However, state governments are reluctant to pay for the premium subsidy saying that plantation crops are governed by central laws. |
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| Ins Communications Pte Ltd · 69 Amoy Street, Singapore 069 888 Tel: (65) 6224 5583 · Fax: (65) 6224 1091 http://www.asiainsurancereview.com/pages/e-weekly.asp?country=3 Published: 9/9/2010 8:37:12 PM © 2010 All rights reserved |
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