INDIA’S BUDGET TARGETS RURAL INSURANCE SECTOR

The budget speech of India’s finance minister on Friday 29 ^th February included the announcement of a 6.4 billion rupees boost to the National Agricultural insurance Scheme for 2008-2009, the implementation of a weather-based crop insurance scheme as well as plans to establish new crop insurance schemes for rubber, tea, chilli, turmeric, pepper, ginger and cardamom. A sum of 500 million rupees will be set aside for the weather-based crop insurance plan that will continue to be piloted in select areas within five states before going nationwide. Meanwhile the finance minister, P Chidambaram, also announced the waiver of 600 billion rupees worth of debt for India’s farmers in his bid to further reform the rural sector. The waiver will cover any loans to small and marginal farms disbursed before March 31 ^st 2007.