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LATEST NEWS UPDATES | Crop insurance scheme loses sheen as coverage area reduces

Crop insurance scheme loses sheen as coverage area reduces

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published Published on Mar 27, 2018   modified Modified on Mar 27, 2018
-The Tribune

New Delhi: The Narendra Modi government’s flagship crop insurance scheme, launched with much fanfare two years ago, has witnessed negative growth this year as the coverage has reduced to 24 per cent of gross cropped area (GCA) in 2017-18 from 30 per cent in 2016-17. This, when the actual target for the current year was 40 per cent.

Similarly, the number of farmers insured during both the kharif and rabi seasons has gone down by 14 per cent this year.

In 2017-18, the area insured under the Pradhan Mantri Fasal Bima Yojana (PMFBY) was 47.5 million hectares, as per the data accessed by IANS, which translates into 24 per cent of the GCA of 198.4 million hectares.

After the PMFBY was launched in February 2016, the area under coverage had gone up to 30 per cent in 2016-17 from 23 per cent under the old schemes a year ago.

As per the government’s targets, the coverage in 2017-18 should have increased to 40 per cent but has actually reduced to 24 per cent.

Thus, the government’s final target of bringing 50 per cent (98 million hectares) of the GCA under the PMFBY in 2018-19, which has been allocated Rs 13,000 crore in the Budget, appears to be an impractical goal.

Under the scheme, farmers have to pay just two per cent of the total premium in case of the kharif crop, 1.5 per cent for rabi and five per cent for horticulture. The remaining premium is equally shared by the Centre and the states.

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The Tribune, 25 March, 2018, http://www.tribuneindia.com/news/nation/crop-insurance-scheme-loses-sheen-as-coverage-area-reduces/563379.html


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