Concerns:
1. Weather Insurance - Voluntary in nature - All members of Cooperative banks, are obliged to obtain Crop insurance, irrespective of their wishes. Loans for these member farmers, are disbursed through the Banks, which automatically deduct the premium amount from the sanctioned loan amount, as Crop insurance is mandatory. This burdens the already resource strapped farmer. Often the farmer is not even effectively aware, of the benefits.
Even were he to understand the benefits of different weather policies, he is in no position to insure himself against the fury of nature. This defeats the very purpose of the scheme
(compulsory Crop insurance, by limiting the insured to a specific and often immeasurable coverage and loss.
2. Service Tax – Weather insurance and weather policies are primarily designed for the farming community, who bear the maximum burden of nature. The financial health of Indian farmers at best, is an open secret. It is prudent to make this burden as light as possible.
Exemption of Service tax could act as a breather in this reality.
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