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MOSCOW, October 25 (Itar-Tass) — Russian Prime Minister Dmitry Medvedev has criticised agricultural producers for the irrational use of the agricultural insurance system. He made the critical remarks at a meeting of the RF government.
Medvedev said that last summer has once again demonstrated the dependence of the agricultural business on climate risks. “The drought destroyed much of the harvest in 20 regions of the country at an area of about 5.5 million hectares,” Medvedev stated. He added that two weeks ago, it was decided to allocate 6 billion roubles to support the affected farms.
“The farmers have a modern mechanism, which, unfortunately, they use not very effectively - insurance with state support, in which half of the premium us subsidised,” the prime minister said, noting that the new insurance system has started to work this year. “Frankly, the results are still very modest. As of October 10 this year, one-fifth of spring crops have been insured – it’s about 10 million hectares. Although under the current state program the target share of the insured farmland for 2012 is 40 percent,” the cabinet head said. In his opinion, “It is clear that this tool should be used a little differently.” Medvedev urged to conclude contracts on time, and not to rely on the assistance from the federal budget.