Global Economy

Crop area covered under recast insurance scheme to fall

NEW DELHI: The revamped crop insurance scheme is likely to reduce the crop area covered by 20-30% as it is no longer mandatory. This may increase the premium charged to farmers who opt for the scheme, officials said.

Agriculture minister Narendra Singh Tomar said the number of farmers taking insurance cover was likely to eventually increase.

“Initially, there will be a drop in number, but enrolments will increase gradually as farmers have become aware about risk cover,” Tomar told ET.

As per the official projection, the drop in crop area is likely to be from 30% to 20% in the coming kharif season, which will take at least three years to recover.

“The crop area had increased from 23% in 2015-16 to 30% in 2019-20. Now after the revamp, we will be back to square one. Next three years will be crucial for the scheme,” an official said.

The cabinet last week approved the revamp of the flagship Pradhan Mantri Fasal Bima Yojana (PMFBY) making enrolments voluntary for farmers among other changes like limiting the central subsidy for high premium crop and introducing technology for the assessment of crop yield.


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