The annual premium is likely to increase by 2% from existing 12.5% as number of participating farmers is likely to fall 30%.
Over the last three crop seasons since launch, the average number of participating farmers had been 37.5 million with 58% of them having crop loan.
“Insurance cover is set to become costly with government’s share in total premium likely to go up by Rs 4,000 crore – Centre and states contributing equally. Since launch of this scheme in 2016, government pays annual premium in the range of Rs 24,000-25,000 crore. In the ensuing crop season, government may have to pay `28,000-30,000 crore with lower base of farmers,” said an official.
The forecast of normal monsoon would also discourage farmers from enrolling in crop insurance scheme.
“Now farmers in low risk zones like western Uttar Pradesh, Assam, Gujarat and parts of Madhya Pradesh will withdraw from this scheme,” the official said.
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1 Comment on this Story
Virendra Mantri271 days ago
By now everyone knows that agriculture is full of uncertainties. The poor farmer takes all the risks and does not have anywhere to go. The government also does its little bit by announcing loan waivers and doling out a few sops here and there.
Wonder why agriculture products cannot be costed as industrial products ?
Crop insurance must be made mandatory for all farmers across the country. The amount paid as premium must be accounted in the cost of produce for determining the minimum support price.
Surely this practice will rid the farmers of a major invisible burden they have been carrying perennially.