Tamil Nadu implements new crop insurance scheme1 min read . Updated: 15 Jul 2016, 07:30 PM IST
The Tamil Nadu govt's spending on premiums for crop insurance, Pradhan Maantri Fasal Bima Yojana, will rise to Rs500 crore a year from Rs40 crore
Chennai: Chief minister J. Jayalalithaa on Friday announced the implementation of the central government’s new crop insurance scheme in Tamil Nadu.
Jayalalithaa ordered the implementation of the Pradhan Maantri Fasal Bima Yojana (PMFBY). The state government’s spending on premiums for crop insurance will rise to ₹ 500 crore a year from ₹ 40 crore, the chief minister said in a statement.
PMFBY was launched by the Centre from this Kharif season. The cabinet in January signed off on the scheme, It will substantially reduce the premium paid by farmers and reduce delays and leakages in payment of compensation through direct transfers into the bank accounts of farmers.
Jayalalithaa said Tamil Nadu has been reaching “new heights" in foodgrain production every year; last year, it produced 13 million tonnes.
“The government under my leadership has been providing agricultural inputs at the appropriate time, supplying quality seeds, implementing 100% subsidy to small and marginal farmers, 75% subsidy to the other farmers based on micro-irrigation schemes and taking the necessary steps to implement technologies for farmers," said Jayalalithaa.
For farmers who cultivate kharif crops (April to September), the premium charged would be up to 2% of the sum insured; for rabi crops (October to March), the premium will be up to 1.5%. The Central and the state governments will pay the remaining on a 50:50 basis.
Tenders will immediately be invited from insurance companies approved by the Union government, she added.