Wednesday, July 29, 2009

NATIONAL AGRICULTURAL INSURANCE SCHEME

Salient features

Introduced in:1999-2000 replacing the Comprehensive Crop Insurance Scheme which was in operation since 1985

Implementing Authority:General Insurance Corporation on behalf of Ministry of Agriculture

Beneficiaries:All farmers including sharecroppers and tenants

Covered crops:All

Objective: To insure every farmers against loss of food crops,To help stabilize farm incomes, particularly in disaster years,To encourage the farmers to adopt progressive farming practices, high value in-puts and higher technology in agriculture.

Special feature:50% subsidy on premium for small and marginal farmers.This subsidy is shared equally by Central and state/UT governments.The scheme has an area based approach. For loanee farmers it is compulsory while for non-loanee farmers it will be optional

Premium rates:2.5-3.5% during kharif and 1.5-2% during ravi seasons

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