To cover Rabi crops -- wheat and barley -- under insurance, the Himachal Pradesh government would implement centre's National Agricultural Insurance Scheme (NAIS) for fiscal 2014-2015.
The scheme will be applicable to all farmers growing wheat and barley crops in various parts of the state for which the areas have been identified on unit wise basis, including tehsils and sub-tehsils.
A government spokesperson in a press statement on Sunday said a state-level coordination committee on crop insurance has decided that the NAIS would be implemented during Rabi - 2014-15 season to cover wheat and barley crops.
The scheme would cover crops for natural fire and lighting, storm, hail storm, cyclone, typhoon, hurricane, tornado, drought, dry spells, pests and diseases. The losses arising out of war and nuclear risks, malicious damages and other preventable risks would be excluded under the scheme.
The scheme is compulsory to farmers availing seasonal agriculture operation (SAO) loans from the financial institutions, including commercial banks, cooperative banks, regional banks and primary agriculture cooperatives (PACs) for the insured crops within the stipulated period; while its optional for non-loanee farmers.
The level of indemnity for wheat and barley crops is kept at 80% of the average yield (threshold yield). In case of loanee farmers, sum insured would be at least equal to amount of loan advanced.
For the loanee farmers, in such cases, where amount of crop loan availed comes out to be more than either the value of threshold yield or 150 % of average yield, normal premium rates (lower of flat rate or actuarial rate) will be applicable on the full amount of the loan availed, as the full amount of loan is to be compulsorily insured.
The small and marginal farmers are eligible for 50 % government subsidy on total premium as per the decision taken by the state to enhance the subsidy on premium on the insurable crops, including maize, paddy and potato and for ginger under crop insurance scheme from 10% to 50% (45% as state share and 5% as centre share).