Maharashtra may become 8th state to opt out of Centre’s flagship crop insurance scheme

What is the News?

Maharashtra may follow several other big states and opt-out of Pradhan Mantri Fasal Bima Yojana(PMFBY).

What is Pradhan Mantri Fasal Bima Yojana(PMFBY)?

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Which States have opted out of PMFBY?

States such as Andhra Pradesh, Jharkhand, Telangana, Bihar, Gujarat, Punjab and West Bengal — all predominantly agriculture states — have opted out of the scheme. Some of these states have their own insurance schemes. 

Why is Maharashtra planning to opt-out of the scheme? 

The two major issues on which the Maharashtra government is thinking of opting out are a) denial and delay of claims, b) huge subsidy burden on state governments. 

What Central Government is planning to stop states from opting out of PMFBY?

The central government has set up a panel to suggest suitable working models for PMFBY. It is specifically studying Gujarat’s Beed Model of Crop Insurance.

Source: This post is based on the article “Maharashtra may become 8th state to opt out of Centre’s flagship crop insurance scheme” published in Down To Earth on 15th Feb 2022.