Despite considering a crop insurance model that would set limits on the profit margins for insurers, the Maha Vikas Aghadi (MVA) Government has decided to stick with the Pradhan Mantri Fasal Bima Yojana (PMFBY) which is the Union Government’s crop insurance scheme. This comes ahead of the July 15 deadline for enrollment under the scheme.
The Maharashtra Government even instituted a cabinet sub-committee to discuss the matter, but ultimately decided to go with PMFBY as per sources quoted by TOI. It’s worth mentioning that states like Gujarat, Andhra Pradesh, West Bengal, Telangana, and Bihar have decided to opt-out of the PMFBY.
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As per the Centre’s scheme, the State and Union Governments collectively pay 98 per cent of the insurance premiums while the farmer is expected to pay the remaining 2 per cent. It is believed that the State Government would’ve been in a precarious position to pay off premiums for the crop insurance without the Centre’s assistance.
Maharashtra Chief Minister Uddhav Thackeray had recommended using the insurance scheme adopted in the Beed district wherein a part of the unused premium amount would be returned to the government. But the Union Agriculture Ministry declined this request and recommended the State to continue with PMFBY for the Kharif season which has begun already.
“In neither scheme is the farmer receiving adequate compensation. On that front, neither model does justice,” activist Rajan Kshirsagar said on the matter.
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