Has the Maharashtra Cabinet Revised the Crop Insurance Scheme?
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Synopsis
The Maharashtra Cabinet has recently approved a revised crop insurance scheme amid ongoing allegations of corruption, aimed at improving the lives of farmers through better coverage and support. This new initiative not only adjusts insurance costs but also emphasizes sustainable agricultural practices.
Key Takeaways
- The Maharashtra Cabinet has approved a revised crop insurance scheme.
- Farmers' contributions are now set at two percent for Kharif, 1.5 percent for Rabi, and five percent for cash crops.
- A total of Rs 25,000 crore has been allocated for agricultural infrastructure development.
- The scheme aims to support sustainable agricultural practices.
- Special emphasis will be placed on inclusivity, particularly for vulnerable groups.
Mumbai, April 29 (NationPress) Following claims of corruption and irregularities involving the ruling MahaYuti government and the opposition Maha Vikas Aghadi regarding the implementation of the Rs 1 Crop Insurance Scheme, the Maharashtra Cabinet, under the leadership of Chief Minister Devendra Fadnavis, has approved a new scheme that incorporates findings from crop harvesting experiments.
As per this new directive, the farmer's contribution has been adjusted: it will be two percent for Kharif, 1.5 percent for Rabi, and five percent for cash crops, rather than the previous Rs 1 insurance.
According to the government announcement dated June 26, 2023, the Pradhan Mantri Fasal Bima Yojana is currently operational in the state for the Kharif season of 2023 through the Rabi season of 2025-26. Due to ongoing complaints about the scheme's execution, modifications will be made, and a revised crop insurance approach will be adopted. A new tender process will facilitate its rollout, with the cabinet approving the plan after the State Level Crop Insurance Coordination Committee endorsed it.
The state Cabinet also gave the green light to a restructured weather-based fruit crop insurance plan under the Pradhan Mantri Fasal Bima Yojana, which will be executed in its existing format.
Additionally, the Cabinet sanctioned a new scheme aimed at boosting agricultural infrastructure through increased capital investment in the farming sector.
This initiative is designed to empower farmers to pursue environment-friendly agricultural practices and promote sustainable growth. The scheme will allocate Rs 25,000 crore over the next five years, at a rate of Rs 5,000 crore annually.
To ensure the effective implementation of this scheme, the Cabinet has resolved to reserve one percent of the sanctioned budget for training and demonstrations for farmers and related entities, while 0.1 percent will be earmarked for evaluating the scheme through a third-party organization. Special consideration will be given to very small, small landholders, differently-abled individuals, and women farmers. The implementation will follow a 'first come, first served' approach with defined district-wise objectives.
It is anticipated that the financial allocation for this scheme will take approximately two to three months to finalize. Consequently, the Cabinet approved the use of funds from existing state-level schemes to cover components of this initiative.
Point of View
The recent revisions to the crop insurance scheme in Maharashtra reflect a necessary response to the criticisms faced by the government. While the changes aim to enhance farmer support, the effectiveness of implementation will determine its success. Moving forward, transparency and accountability will be key to restoring trust among the farming community.
NationPress
02/05/2025
Frequently Asked Questions
What is the revised crop insurance scheme in Maharashtra?
The revised crop insurance scheme approved by the Maharashtra Cabinet adjusts farmers' contributions to two percent for Kharif, 1.5 percent for Rabi, and five percent for cash crops, aiming to improve coverage and support.
How much funding has been allocated for agricultural infrastructure development?
The Maharashtra Cabinet has approved a total provision of Rs 25,000 crore for agricultural infrastructure development, with an annual allocation of Rs 5,000 crore for the next five years.
Who will benefit from the new crop insurance scheme?
The scheme prioritizes very small and small landholders, differently-abled individuals, and women farmers, ensuring inclusive support for all.
What are the key changes in the insurance contribution rates?
Farmers' contributions have been revised to two percent for Kharif crops, 1.5 percent for Rabi crops, and five percent for cash crops, replacing the earlier Rs 1 insurance model.
When will the financial provisions for the scheme be finalized?
The financial provisions for the scheme are expected to take two to three months for finalization, during which existing funds may be utilized.
