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Monday 21 August 2017
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Union Govt set to introduce Farm Income Insurance Scheme

Farm Income Insurance Scheme

To lessen the price risks affect the income of farmers, which has adverse effect on their capacity to invest in advance crop varieties, techniques of production and capital formation in farm sector, the Union Government considering to launch farm income insurance scheme so that these two important components i.e. production and price can be tackled under single policy instrument.

The objective of this scheme would be to protect the farmers by giving them insurance cover for their production and market risks. The scheme aims to ensure continuous production, protection to livelihood and crops, encouragement to multiplicity of crops, which may promote competition from the angle of exports.

Union Minister of Agriculture, Radha Mohan Singh said that Country facing difficulty to deal with storage capacity of our godowns and our procurement agencies like Food Corporation of India (FCI) are facing financial and structural difficulties. As such, mere subsidy cannot ensure guarantee for appropriate income to our farmers. Appropriate management of agricultural produce and improvement in processing technology can ensure good prices to farmers and they can also contribute to it.

The Minister said that Government of India is implementing since 1985 crop insurance to protect farmers from adverse affect of natural calamities at national level. Based on experience gained from implementation of farm insurance schemes, consultation with State Governments and stakeholders, a revised scheme is being considered which may be more conducive to farmers’ needs. During 2003-2004 rabi season some states and districts had started a scheme under which farmers were entitled to get compensation in the event of their getting lesser income from their production than guaranteed income. However, this scheme was applicable in case of rice and wheat only and it could not be implemented further, he added.

Minister asserted that the present government has invited suggestions from all states to protect the income of farmers by way of giving a concept paper for insurance scheme so that difficulties experienced in the past could be overcome. Ministry officials have held discussions on 14th August, 2014 with all State Governments, Singh said.

He expressed the hope that deliberations held in the seminar would firm up solid suggestions which would be helpful in preparing a practical and durable farm income insurance scheme.



Rahul Bhandari is Editor of TheNewsHimachal and has been part of the digital world for last eight years.