Jaya announces new crop insurance scheme for farmers

15 July, Chennai

Tamil Nadu Chief Minister J Jayalalithaa Friday ordered implementation of a new crop insurance scheme for farmers.

In a statement here, she recalled the promise made by the AIADMK party in the run up to the May 16 Assembly election that an improvised crop insurance scheme would be implemented. Following this, she ordered implementation of the Prime Minister’s Crop Insurance Scheme which would come with the financial contribution of the State government,’ she said.

Ms Jayalalithaa said as per the new scheme, the loss will not be calculated on firka basis. Instead, it will be done on village basis. ”This will result in farmers getting exact amount of compensation for their losses,” she added.

Ms Jayalalithaa said the scheme would cover all types of losses, unlike the old scheme which covered only specific portions. While farmers have to share a small portion of the premium, the Central and the State governments will pay the remaining on a 50:50 basis.

Though the State government will have to spend more due to the implementation of the scheme (more than Rs 500 crore needs to be paid as premium), her government was happy to opt for it, as it would be beneficial to the farmers.

She said tenders will be invited immediately from the Insurance Companies approved by the Union government for the crop insurance scheme