"The farmers face vagaries of not only nature but also market forces and middlemen. It is almost as if risks belong to farmers and rewards to others. My Government is determined to stop this injustice," Vajpayee said launching the national agricultural insurance scheme, which was cleared by the union cabinet on Tuesday.

Vajpayee said the Government would also establish a separate organisation, Bharatiya Krishi Bima Nigam, exclusively for managing insurance to agriculture sector.

For the time being, the scheme would be managed by General Insurance Corporation (GIC).

The insurance scheme, which was promised by the Prime Minister on August 15, 1998, would cover all farmers and crops, unlike the existing comprehensive crop insurance scheme, which has a very limitedcover.

The new scheme will start from this rabi season and would not have any ceiling on the insurance cover.

Currently only a few crops are offered for insurance and there is an upper ceiling of Rs 10,000.

The Prime Minister said a good insurance would provide a positive and stabilizing influence on production and productivity, while reducing the risk of loan default.

Referring to the recent spate of suicides by cotton farmers in Andhra Pradesh, Karnataka, Maharashtra and Punjab, he said the insurance scheme would also insulate the farming community from problems of plenty.

While it provided protection to the small and marginal farmers, it would also motivate the richer farmers to adopt progressive farming practices and new technologies, he added.

Speaking on the occasion, agriculture minister Som Pal said the country had witnessed record foodgrain production as well as other cash crops and milk but warned against any calamity striking the agriculture sector.

He also spoke of the success of therecently launched credit card scheme through which farmers could either take loans from banks or procure seed and fertilisers from the market.