With foot-and mouth disease and road accidents claiming the lives of thousands of cattle in the past, the State government has decided to implement the livestock insurance scheme in this financial year to encourage farmers to insure their milch cattle and buffaloes.
Under the scheme, a maximum of five cattle/buffaloes would be covered by a farmers’ family. The maximum insurance cover for an animal is Rs 50,000.
So far, milch cows and buffaloes purchased under bank loans covered under the insurance scheme. Now, it has been decided to provide insurance cover for all milch animals in the State.
While the Government will bear 40 per cent, the Karnataka Milk Federation and other milk producers’ societies would bear 30 per cent of the premium for the insurance cover to milch cows. The beneficiary farmer would have to bear rest of the amount.
The Government has set aside Rs. Nine crore for paying its share of premium, according to Animal Husbandry Minister T.B. Jayachandra, who made efforts to get the Cabinet nod for the proposal last week.
If a cow is insured for Rs. 50,000, the yearly premium would be two per cent of the cost, which is about Rs. 1,000. The farmer will have to pay Rs. 300 a year while the remaining will be borne by the government.
According to 2012 Livestock Census, the State has 95 lakh of cattle and 35 lakh buffaloes.
Mr. Jayachandra said the scheme would benefit dairy farmers immensely. As certain category breed cattle are very expensive, generally, farmers have not been covering milch animals under the insurance scheme owing to ignorance and financial difficulties, he said.
Dairy farmers are already facing financial difficulties owing to cut in milk prices by milk unions owing to excess milk production (74 lakh litres per day) in the State.
In Karnataka, the share of animal husbandry in Gross State Domestic Product of agriculture and allied activities was around 20 per cent. The share of Karnataka in all India livestock population was 5.4 per cent.
The State Cabinet also cleared a proposal on implementation of the Pashu Bhagya - a scheme aimed at providing interest subsidy to farmers setting up cattle, sheep, poultry and piggery units.
Under the scheme, small and marginal farmers, having up to two hectares of land, are entitled for bank loans up to Rs. 1.2 lakh on each unit. While Government would reimburse 33 per cent of interest amount on the total amount in the case of SC/ST families and 25 per cent of interest on the amount in the case of other famers, he said.
