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G. Srinivasan

New Delhi, Nov 5 The Group of Ministers (GoM) on plantation industry, headed by the Union Agriculture and Food Minister, Mr Sharad Pawar, on Wednesday decided to convene a meeting of Chief Ministers of States on December 10 to resolve the subsidy-sharing formula for the Rs 729 crop insurance scheme for the plantation sector.

The Minister of State for Commerce and Power, Mr Jairam Ramesh, a special invitee to the GoM, said while he has put forth the rationale for 100 per cent funding by the Centre entailing Rs 500 crore, there were reservations from the Ministers of Agriculture and Finance. He said the formula of 50:50 between the Union and State Governments should be ideal so that the States as stakeholders in the plantation industry should also keep the tabs on. It was, therefore, decided to convene a meeting of the State Chief Ministers next month to take a final call on the issue, he added.

The proposed crop insurance scheme covers coffee, tea, rubber, tobacco, chilli, ginger, turmeric, pepper, cardamom and flowers.

Meanwhile, official sources said that the Personal Accident Insurance Scheme for the grower members of Price Stabilisation Fund (PSF) Scheme that covers the growers of tea, coffee, rubber and tobacco and has been in vogue from 2005 would likely to be modified. Certain modifications have been proposed in the scheme based on the actual response to the tender warranting augmentation of premium of Rs 14 to Rs 212 a beneficiary a year. Flexibility for implementation of the scheme has also been proposed since the premium is market driven. It is also proposed to expand the coverage of the scheme to include chillies, cardamom, ginger, pepper and turmeric which was recommended by the GoM at its meeting held in October 2007.

The basic parameters of the scheme envisaging 50:50 sharing basis of the premium to be shared by the Government to be mete by the Price Stabilisation Fund Trust out of its interest earning and remaining 50 per cent by the beneficiary have been retained.

The sources said the Department of Commerce has forwarded a note to this effect recently for the consideration of the Cabinet Committee on Economic Affairs (CCEA).

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