TAMIL NADU

Insurance scheme for farmers cultivating cholam, groundnut

R. Vimal Kumar

It provides comprehensive risk coverage against yield losses



Insurance is being provided through the Agricultural Insurance Company of India Limited



Tirupur: Farmers cultivating cholam and groundnut in Tirupur block can now look forward to adopt progressive farming practices, as they are being brought under the ambit of National Agricultural Insurance Scheme by the Department of Agriculture.

The insurance is being provided through the Agricultural Insurance Company of India Limited (AICIL), to provide financial assistance in the event of crop failures.

Dry spell

S. Suryanarayanan, Administrative Officer, AICIL, told The Hindu that the last date for farmers growing cholam and groundnut to join NAIS had been set on January 15. “The scheme will provide comprehensive risk coverage against the yield losses owing to drought, dry spells, pest attacks, diseases, inundation, natural fire and storms,” he said.

Premium

Regarding the premium, Mr. Suryanarayanan said that the government had slashed 50 per cent of the premium payable as a bonanza for the farmers.

Accordingly, premium payable for an acre of cholam and groundnut in the case of small and marginal farmers having an aggregate land holding of less than five acre was pegged at Rs. 25 and Rs. 156, respectively, the official said.

Land holding

Farmers having an aggregate land holding of more than five acres, should pay premium at the rate of Rs. 28 for cholam and Rs. 174 for groundnut for every acre brought under cultivation.

The scheme offers three levels of indemnity at 90, 80 and 60 per cent, corresponding to low risk, medium risk and high risk areas.

Option

The insured farmers of a unit area were given an option to choose higher level of indemnity on payment of additional premium.

M. Subbiah, Assistant Director, Department of Agriculture, said that the ‘threshold yield’ for a crop in an insurance unit was calculated as the moving average based on average yield over the last five years multiplied by the level of indemnity.

“The insurance coverage will thus act as a critical instrument to enhance the production multifold and thereby enhance job opportunities,” Mr. Subbiah said.

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