Chief Minister Jayalalithaa on Friday announced that a new crop insurance scheme — Pradan Mantri Fasal Bima Yojana — will be implemented in the State as it will be more beneficial to farmers.
Till now, the State government was paying about Rs.40 crore per annum as subsidy towards the premium but it will have to spend Rs.500 crore in subsidy while switching over to the Prime Minister Crop Insurance Scheme, Ms. Jayalalithaa said in a statement here.
Financial burden
Even if the number of farmers covered under the insurance remains the same, the State will have additional financial burden and the government willingly takes it up as the scheme will be beneficial to farmers, Ms. Jayalalithaa said adding that the subsidy amount will go up when more farmers are included.
According to the new crop insurance scheme, the loss will be calculated at the village level and not at the firka level and therefore the calculations will be much more accurate based on which farmers will get compensation.
Wide coverage
Besides, the new scheme covers a whole gamut of farming activities like prevented sowing / planting risk, standing crop (sowing to harvesting), post-harvest losses and localised calamities, she said unlike before when compensation was based only on yield.
As the indemnity level in the most affected nine districts has been increased from 60 to 70 per cent, the farmers will be able to get better compensation, she pointed out.
The premium to be paid by farmers will be two per cent of the actuarial rate during the kharif season (between April to September) and 1.5 per cent during rabi season (from October to March). The State and Centre will equally share the remaining premium amount.
The Chief Minister also said the coconut tree insurance scheme will continue to be implemented.
