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Is crop insurance scheme losing steam?
News:
- 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
- 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:
- According to a RTI reply, 84 lakh farmers have withdrawn from the scheme, highest number being from Rajasthan, followed by Maharashtra, Uttar Pradesh and Madhya Pradesh
- 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
