PM urged to release Rs 356.58-cr crop insurance

Andhra Pradesh Chief Minister K Rosaiah has requested Prime Minister Manmohan Singh to immediately release Rs 356.58-crore from the Centre towards payment of insurance claims to farmers who suffered crop loss due to recent floods and drought in the state.

In a letter to the Prime Minister, the Chief Minister said insurance claims to the tune of Rs 801.20-crore were approved by the Agriculture Insurance Company of India (AIC) under the National Agricultural Insurance Scheme (NAIS) for the Kharif crop season, 2008.

The State government has already released its share of Rs 361-crore while the Centre has to release Rs 356.58-crore as its share. The AIC would contribute the balance amount. "The disbursement of insurance claims is pending for want of Centre's share of claims.

"I understand that the Department of Agriculture has inadequate budget provision under this scheme due to which release of Central share is held up. I request your intervention to ensure that the required financial provisions are made to facilitate immediate release of Rs 356.58-crore.

Release of the Central share of claims will enable us to disburse the insurance claims and ensure timely relief to the 7.57 lakh farmers for the ensuing Rabi crop," Rosaiah said.

The Chief Minister also wrote a letter on the same issue to Union Agriculture Minister Sharad Pawar.