Is crop insurance scheme losing steam?

Is crop insurance scheme losing steam?

News:

1. According to a reply to an RTI application, more than 84 lakh farmers (around 15% of the total farmers) insured in the first year of the Pradhan Mantri Fasal Bima Yojna in 2016-17, withdrew themselves from the scheme in 2017-18

Important Facts:

About Pradhan Mantri Fasal Bima Yojna

2. It is a crop insurance scheme introduced by the Union government in 2016. The major objectives of the scheme are:

• To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crop as a result of natural calamities, pests & diseases.
• To stabilise the income of farmers to ensure their continuance in farming.
• To encourage farmers to adopt innovative and modern agricultural practices.
• To ensure flow of credit to the agriculture sector.

Recent issue:

3. According to a RTI reply, 84 lakh farmers have withdrawn from the scheme, highest number being from Rajasthan, followed by Maharashtra, Uttar Pradesh and Madhya Pradesh
4. However, the crop insurance companies, including Reliance, ICICI, HDFC and IFFCO, among others, have registered a total profit of around ₹15,795 crores since the launch of the scheme. Critics have alleged that the scheme has been primarily aimed at benefiting the private insurance companies in the name of farmers