Chandigarh, October 22
Punjab will introduce crop insurance for all marginal farmers from the next rabi season. The department of food and supplies has generated adequate funds that will be used for the purpose of insurance, without seeking any monetary help from the state government.
Minister for food and supplies Adesh Partap Singh Kairon said all modalities had been worked out and the scheme would be implemented over the next few days.
Besides, his department had also decided to give a bonus of Rs 50 on paddy directly to the farmers without involving middlemen. “The disbursement will be done immediately from our own funds, without waiting for funds from the union government”, the minister said today.
Kairon said, “Justice demands that the bonus is given to all farmers — those who have sold their paddy to the six procurement agencies of the government as well as those who have sold
paddy to private traders. We have decided to give this bonus to all.” He said the department had enough funds of its own and it did not have to seek the help from either state or Central governments.
Elaborating on the crop insurance scheme, Kairon said his department would use the definition of the union government to define a marginal farmer (with less than one acre) and the insurance would come into place from the next wheat crop (rabi). About the funds for the scheme, he said rice mills that wanted more paddy than their allocated quota had been asked to deposit 5 per cent security for the excess paddy they had sought.
“The five per cent security from millers collected so far amounts to Rs 80 crore. This has been put in banks on an interest of 12.25 to 13 per cent, fetching an annual interest of over Rs 80 lakh.” This amount, Kairon said, would be used for paying the insurance premium.
Besides, he disclosed that shellers, which failed to make payments for previous purchases, had been blacklisted and given two months to make the payment if they want to be removed from the blacklist. So far, he said, the government had recovered Rs 25 crore that would also be used toward the insurance scheme and bonus payment.
He said the Department of Food and Supplies had computerised the entire procurement process that would enable it to get all payments from the union government. He added that the Punjab government had not submitted any balance sheets to the Central government for claiming funds for the past 5 to 10 years.
Kairon said money was being paid to the farmers through direct on line transfer, leading to a quick and transparent transfer. Besides, he said, his department was also asking the union government to pay a 2 per cent administrative charge on all wheat and paddy procured by his department. This matter, he said, was still being negotiated.
