Risk cover for Tobacco, Tea in Offing

Source from:  The Times of India 12/12/2011

GUNTUR: The Centre is considering to bring the crops that are being managed by independent boards such as tobacco , tea and rubber under insurance cover. It is learnt that the commerce ministry has asked for detailed reports from the chiefs of the boards with observations of the stakeholders of the crops. After a meeting in Delhi, senior officials of the commerce ministry asked the Tobacco Board to initiate discussions with the growers to implement the scheme. With Parliament in session , Tobacco Board chairman G Kamalavardhan Rao deputed its executive director K Subbarao for the high-level meeting to discuss crop insurance scheme. Sources said the government plans to take 50% of the financial burden of the scheme. The Centre wants the respective state governments to implement the scheme. The Centre might ask states to take a share of at least 40% of the premium, Rao told TOI. Premium would be fixed at 6% of the total investment cost of the crop per acre. Though, the tobacco growers have been putting the cultivation cost at Rs 60,000-80,000 per acre, Centre is likely to fix at around Rs 50,000. Enditem