Central government cuts its share in flagship crop insurance scheme-THE HINDU-20-02-2020
In a significant step, enrolment in the two schemes has also been made voluntary for all farmers, including those with existing crop loans.
When the PMFBY was launched in 2016, it was made mandatory for all farmers with crop loans to enroll for insurance cover under the scheme.
The Centre has almost halved its contribution to its own flagship crop insurance schemes, slashing its share of the premium subsidy from the current 50% to just 25% in irrigated areas and 30% for unirrigated areas from the Kharif season of 2020.
Farmers pay a fixed share of the premium: 2% of the sum insured for Kharif crops, 1.5% for rabi crops and 5% for cash crops.
Currently, the Centre and State split the balance of the premium equally.
However, the revamp now reduces the burden on the Centre and increases the share of States.
The Centre would launch an awareness campaign to encourage farmers to voluntarily sign up for crop insurance policies.
Restructured Weather Based Crop Insurance Scheme (RWBCIS):
Weather-based Crop Insurance Scheme (WBCIS) is a unique Weather-based Insurance Product designed to provide insurance protection against losses in crop yield resulting from adverse weather incidences.
It provides payout against adverse rainfall incidence (both deficit & excess) during Kharif and adverse incidence in weather parameters like frost, heat, relative humidity, un-seasonal rainfall, etc. during Rabi.
It is not a yield guarantee insurance.
Major Food crops (Cereals, Millets & Pulses), Oilseeds, Commercial and Horticultural crops are covered under this scheme.