Commission for Agricultural Cost and Prices (CACP) said it will recommend the Centre to make crop insurance scheme more effective and better, observing that farmers are not fully compensated for crop loss caused by natural calamities.

"Farmers need an insurance policy which can compensate all expenses incurred on losses and it should be long term and completely transparent. During losses incurred in natural calamities, the farmers are paid compensation only for some of their input cost whereas the actual loss is much more than the compensation awarded," CACP Chairman Ashok K Vishandass said.

CACP met farmers in Punjab seeking feedback from growers for making crop insurance pro-farmer, said an official release.

Release quoting CACP Chairman said the Commission would send its recommendations to the Government of India advocating that the crop insurance scheme be made better, effective and crafted in larger interest of the farming community.

He said only a small portion of inputs is given to farmers while awarding compensation whereas loss incurred by farmers is much more.

He suggested that in such circumstances the farmers should be given compensation equal to his income during normal harvest season, which the insurance companies should compensate and to prepare proper policy in this regard, suggestions from the commission, farmers and farm experts should also be taken.

CACP Chairman accompanied by member secretary Shailja Sharma visited villages of Jhabel Wali, Dodan Wali and talked to the farmers about problem of water logging.

Yesterday, Punjab Chief Minister Parkash Singh Badal had asked the CACP to immediately recommend a comprehensive insurance scheme to cover the entire loss of the farmers as the existing norms of relief do not fully compensate the loss damaged caused to their crops due to vagaries of weather or natural calamities.

Badal in his meeting with CACP Chairman in Chandigarh had also impressed upon the Chairman CACP to recommend for the reimbursement of the difference between the MSP and the actual market price on which their crops were procured especially in the case of alternate crops like maize, oilseeds and others to boost crop diversification.

Source - http://www.business-standard.com/