New Delhi, Feb 29 : Union Finance Minister P Chidambaram on Friday announced Rs. 644 crores for the National Agriculture Insurance Scheme (NAIS). While presenting the Union Budget 2008-09 in Lok Sabha, Chidambaram said the scheme will continue in its present form for Kharif and Rabi crops.
He also announced that 50 crores rupees will be allocated to Weather Based Crop Insurance Scheme that is being implemented as a pilot scheme in selected areas of five States. The Finance Minister said the government would continue to provide fertilizers to farmers at subsidized prices and that it is examining proposals to move to a nutrient based subsidy regime and alternative methods of delivering the subsidy. The Special Purpose Tea Fund set up last year for re-plantation ad rejuvenation will be provided Rs. 40 crore, said Chidambaram adding that similar funds will be provided to support other plantation crops such as cardamom with an outlay of Rs. 10.68 crores, rubber with Rs. 19.41 crores and coffee with Rs. 18 crores.