Monday, April 23, 2012

Budget burden: Insurance for tractors up by 200%

The after effects of the union budget have surprised tractor manufacturing companies and even the farmers as tractors have been kept in the commercial segment. With this, the insurance of this vehicle has been increased by more than 200%. The farmers associations though have approached the Principal Secretary to CM but no response has come. The farmers as well as the farm solution companies want a clarity on this subject.
Rajmeet Singh, area manager Swaraj tractors said, "A tractor priced Rs 6 lakh used to be insured with about Rs 8,000 and now this amount has been hiked to Rs 22,000 at par with the diesel cars. The government need to clarify on this subject because insurance companies are giving us this feedback and it will not be in interest of farmers."

Vikram Ahuja, from Zamindara farm solutions and also member of Farmers association Fazilka said," the hike in insurance charges has been done by Insurance regulatory development authority (IRDA) after the union budget announcement. Already the farmers have not been given any bonus on wheat crop and now another blow will be a big shock."

The third party insurance of the vehicle will now be Rs 12,000 instead of Rs 14,000 of the previous prices. Information revealed that the move was to discourage the sale of diesel car but no one was expecting that tractors will also be placed in the same category.

Ahuja meanwhile stated that though it is a centre specific subject but still the state Government must take up this matter with the centre for the larger interest of the farmers in the state. He stated that they have already taken up the matter with the Principal Secretary Gaganjit Singh Brar but he has not responded back so far.

Speaking on this issue, Darshan Singh Koohli, General secretary of Bharti Kisan Union said," this is anti-farmer move by the centre government and the state Government is quiet which shows that how much they are concerned about the farmers. There needs to be a roll back and state must press hard on this subject."

This will affect the business of tractors in Punjab and specially for those who get finance of the tractors done. This huge increase is not justified, complained the farmers.

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