Govt okays livestock insurance cover

New Delhi: Farmers and cattle reares under insurance cover as Government approves new scheme for livestock, against increasing risk.

In the light of the avian influenza outbreak, the government has approved a livestock insurance scheme for implementation in 100 districts on a pilot basis during ‘05-06 and ‘06-07. Depending on the scheme’s performance in the two years, the programme will be expanded in the 11th Plan.

The 100 districts selected would be those where livestock is a potentially important source of supplementary income and where special efforts are being made to introduce crossbreed and high-yield cattle. The scheme aims to insure 15 lakh animals with an estimated expenditure of Rs 120 crore.

The scheme has been formulated with the dual objective of protecting farmers and cattle rearers against any eventual loss of animals and to demonstrate the benefit of the scheme with an aim of attaining qualitative improvement in livestock.

Considering the poor economic status of livestock owners, the central government will subsidise 50% of the premium.

However, finance minister P Chidambaram said that the subsidy will be restricted to two animals per beneficiary and will be given for one-time insurance of an animal up to a maximum period of three years.

He also said that private sector insurer will also be encouraged to participate in the scheme, thereby, providing scope for getting competitive premium rates.

On Tuesday, the CCEA also approved an expenditure of Rs 24 crore for the Hannover Fair. India will be participating after a gap of 22 years and will do so as partner country.

Of the total expenditure, Rs 9 crore would be raised through renting of exhibition space and government as financial assistance under the Market Access Initiative (MAI) scheme would provide the remaining Rs 15 crore, said Mr P Chidambaram.

“The invitation to participate in the Hannover Fair was extended by the German Chancellor, who has also invited Prime Minister Manmohan Singh to jointly inaugurate the fair,” Mr Chidambaram said.