CHANGES IN AGRICULTURAL INSURANCE
SCHEME UNDER CONSIDERATION
CONSULTATIVE
COMMITTEE OF AGRICULTURE MINISTRY MEETS
The Government is
considering some changes in the National Agricultural Insurance
Scheme (NAIS) to make it more effective, realistic and farmer-friendly.
The Agriculture Minister, Shri Rajnath Singh said this while addressing
a meeting of the Consultative Committee attached to his Ministry
here this morning. The subject of the meeting was "Agriculture
Credit and Insurance". The changes in the NAIS under consideration
include rationalization of premium rates, reduction in the unit
area of insurance to the Gram Panchayat level and voluntary participation
by loanee farmers. Efforts are also being made to ensure early
settlement of claims. The Minister pointed out that the condition
of farmers continues to be precarious due to natural calamities,
price fluctuations etc. Vagaries of nature significantly effect
agricultural production and it is essential to revitalize the
Agricultural Insurance Scheme to help farmers mitigate their financial
difficulties in the event of natural calamities.
About agricultural
credit, Shri Rajnath Singh pointed out that the Government has
recently announced a reduction in the rate of interest on agricultural
loans along with other measures like introduction of direct refinancing
facility by NABARD to the District Central Cooperative Banks,
easier loan terms for farm equipment and franchising agricultural
credit through post offices. All the Public Sector Banks have
been advised to reduce their lending rate for agriculture to a
single digit rate of not more than 9% per annum on crop loans
upto a ceiling of Rs.50,000/-. Banks have also been advised to
ensure that the volume of credit to the agriculture sector does
not decline due to reduction in the interest rate.
Despite all these
measures, a lot still remains to be done to achieve the growth
rate of 4 per cent in the agriculture sector, as envisaged in
the National Agriculture Policy. The Minister said that the role
of credit is critical for technological upgradation and commercialization
of agriculture. He also emphasized the need for rationalizing
lending procedures.
Participating in
the deliberations, members called for revitalization of cooperative
banks which have a vast network of institutions for providing
credit to the farming community. They said that the loans provided
by these institutions should be available at lower rates and easier
terms. Some members pointed out that without proper credit support,
diversification of crops may not be achieved.
Responding to
the suggestions, Shri Rajnath Singh said that efforts are being
made to see that cooperative banks are also able to provide loans
to farmers at about 9 per cent rate of interest.
The Minister
of State for Agriculture, Shri Hukumdeo Narayan Yadav was also
present at the meeting. The Members who attended were: S/shri
Bhartruhari Mahtab, Chunni Lal Bhau Thakur, Rattan Lal Kataria,
Parsuram Majhi, Mahboob Zahedi, Mahendra Singh Pal and Smt. Praneet
Kaur.
