Due to Good Rain, Fewer Farmers Opt For Crop Insurance.

Mumbai: According to Agriculture department data, compared to last year the number of farmers who have opted for crop insurance has dwindled considerably. A good monsoon in most parts of the Maharashtra is helping the agriculture sector in recovery.

Last year, the worst droughts hit the state and 84 lakh farmers had opted for insurance, but this year, the government also has rolled out a new insurance scheme that has increase indemnity levels, only 53 lakh opted for insurance.

According to official’s observation, the new insurance scheme is now voluntary and a major reason for the dip was good rainfall in most parts of the state and expectation of a healthy crop yield.

From this year in the state the Pradhan Mantri Pik Bima Yojana (PMPBY) has been implemented. Under this scheme, the premium to be paid by farmers has been reduced to 2% of the sum insured for all the crops, and the rest will be borne by the state and central governments.

Under the PMPBY, the indemnity levels have also been increased from 60-70%, so that higher damages can be recovered and many more conditions in which claims can be made in case of a damaged crop, have been included, like post-harvest losses.

A senior agriculture department official said "The rains have been very good this year, which has made farmers hopeful about a good crop yield and so farmers did not take any insurance."

Source:http://timesofindia.indiatimes.com/