Coverage of Farmers in National Agricultural Insurance Scheme Goes up to 239 Lakh

Under National Agricultural Insurance Scheme (NAIS) the participation of farmers has increased gradually from 105 lakh farmers during the year 2000-01 to 239 lakh farmers during the year 2009-10.

The NAIS envisages coverage of food crops, oil seeds, pulses and annual commercial horticultural crops in respect of which (i) the past yield data based on Crop Cutting Experiments (CCEs) is available for adequate number of years and (ii) requisite number of CCEs are conducted for estimating the yield during the proposed season. The scheme is voluntary for the States and UTs and is compulsory for farmers availing agricultural loans from rural financial institutions like commercial banks, Cooperative Banks and Regional Rural Banks (RRBs) and voluntary for non-loanee farmers in notified areas and crops.

Data in respect of coverage under the scheme is compiled by the implementing agency after completion of the crop season. The admissible claims and farmers benefited under the scheme are calculated/settled after receipt of yield data from the concerned State Government. The cut off date for receipt of yield data for Kharif 2010 is January/March, 2011.

During the course of implementation of the scheme, States/UTs have reported various suggestions, including methodology for calculation of average yield/guaranteed yield.

The proposal on Modified NAIS incorporating the improvements suggested by the Joint Group and views/comments of the various stake-holders has been approved for implementation on pilot basis in 50 districts from Rabi 2010-11 season.

This information was given by Prof. K.V. Thomas, Minister of State for Agriculture, Consumer Affairs, Food and Public Distribution in written reply to a question in the Lok Sabha today.

MP: SB: agri insurance (16.11.2010)