Farmers will now get crop insurance according to the cost of production


Bhopal: Farmers in the state will now get the benefit of the Pradhan Mantri Crop Insurance Scheme according to the cost of production. The Shivraj government has changed the decision of the Congress’s Kamal Nath government, in which only 75 percent of the cost of production was kept under insurance. Due to this, farmers received less compensation for crop insurance. Agriculture Minister Kamal Patel has approved the proposal of inviting tenders from insurance companies for three years from Kharif 2020.

Prime Minister crop insurance is compulsory for all farmers who take loans from cooperative institutions in the state. In the case of natural calamity, when the crop is damaged, crop insurance is provided on the basis of loss. This does not put the burden of debt on the farmers and also to meet the cost to a large extent, which proves helpful in times of crisis. The Kamal Nath government limited crop insurance to 75 percent of the cost of production. Due to this, the government had to pay less contribution to the premium but farmers suffered. In view of this, the government has decided that according to the cost of production, farmers will be provided the benefit of Prime Minister crop insurance. Tenders called from companies Following the instructions of Chief Minister Shivraj Singh Chauhan, Agriculture Minister Kamal Patel has given permission to call tenders from insurance companies for three years from Kharif 2020 under the new provisions.

It also contains a provision that the state government or insurance company can exit the tender three months before each financial year. The entire cost of the crop of the farmers will be determined at the district level by a committee headed by the Collector. The Central Government has agreed to keep the 31 July 2020 deadline for the plan for Kharif 2020.

Proposal to form a company or trust in cold storage

The state government was preparing to form its own insurance company or trust for crop insurance. The proposal was also prepared and Agriculture Minister Kamal Patel also held a meeting. Sources say that there was a lot of churn in the previous Shivraj government as well but no conclusion was reached. It is being told that the department has not got the green signal to proceed in this matter from the Chief Minister.