The Fatnavis government in Maharashtra has halted a crop insurance scheme launched in 2023. There were many things about this decision. According to reports, the Maharashtra government has stopped the insurance plan due to economic burden. Instead of the 1 rupee crop insurance scheme, the Prime Minister’s Crop Insurance Scheme (PMFBY) has now been implemented in the state. Under this new decision, farmers have to pay premium based on the percentage of crop insurance.
Had the largest increase in applications
Due to the project, the Maharashtra government is reportedly facing an additional financial burden of Rs 6,000 crore. Because of this, the government had to return to the Prime Minister’s Crop Insurance Scheme for the Crop Insurance Scheme for Rs 1. The Maharashtra government revised the Prime Minister’s Crop Insurance Scheme (BMFPY) in 2023 and provided crop insurance for just 1 rupee. After this, in 2023, applications reached Rs 104.5 crore from Rs 242.54 crore from 2023-24, which was a heavily increase.
Load on the state government
Due to the increase in applications, a total of Rs 10,141.12 crore was paid to insurance companies. Of this, the central government has paid Rs 6,048.48 crore and the state government has paid Rs 4,090.21 crore. Farmers paid Rs.2.43 crore. It was more than Rs 6,000 crore than the previous premium 4,691.51 crore. The government has adopted the beet system (80: 110) that prioritizes farmers. If the loss is more than 110 percent, the government covers an additional amount. If companies pay less than 80 percent, they refund the difference to the government. This reduces the company’s profit.
Now available under the insurance PMFBY
Excessive rainfall caused more than 110 percent loss. With this, the state government had to pay an additional Rs 2,000 crore to insurance companies under the beet system. Therefore, it was canceled due to financial stress due to a rupee plan. According to Pratibha Patil, Deputy Secretary of the Department of Agriculture, the original PMFB will be re -implemented. The new implementation regulations for 2025 will be finalized after discussing with the central government.
(Report of Rithvik Balekar from Mumbai)
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