New crop insurance scheme to be announced this week

crop insurance scheme

In a bid to support farmers in case of crop failure, the government this week is expected to announce a crop insurance scheme where farmers would have to pay a maximum premium of 2.5% of the sum insured for the food crops, while the remaining cost would be borne by state and central governments.

Official sources told FE that for dealing with delay in settlement of compensation, the new crop insurance policy proposes immediate payment of 25% of sum insured amount for crop damage to farmers and use of latest technologies  — drone, smartphone, mobile app and satellite imaginary — to assess crop damages in the shortest possible time.

At present, farmers pay as high as 15% premium on the sum assured under the two crop insurance schemes — Modified National Agricultural Insurance Scheme (MNAIS) and Weather-Based Crop Insurance Scheme (WBCIS).

State-owned Agriculture Insurance Company of India, a key player providing crop insurance, along with private sector companies have been taken into consultation prior to formulation of the proposed New Crop Insurance Scheme (NCIS).

The Cabinet, which is expected to take up NCIS on Wednesday, would consider the agriculture ministry proposal of fixing maximum premium up to 1.5% for wheat, 2.5% for paddy, 2% for oilseeds and 2-2.5% for other crops.

Curated from New crop insurance scheme to be announced this week

You may also like...