New Delhi, Feb 20 (SocialNews.XYZ) Congress on Wednesday accused the Centre of shutting down the crop insurance scheme in a "surreptitious" manner by making it completely unimplementable after the Union cabinet decided that the government would reduce its share in the premium.
Launching a scathing attack on the government, Congress Chief Spokesperson Randeep Surjewala said, "The scheme itself is being shut down completely. So, where will the farmer, where will India's farmers face the consequences of rap of nature. That is the question that is lying unanswered and the Agriculture Minister has the audacity to say that they have taken a great step forward."
Congress also accused the earlier scheme was also to benefit private insurance companies.
"Except for one or two the rest are all private companies and these figures and data that government has released is unequivocal. It shows the total premium amount received which is Rs. 77,801 crore. It shows the claims paid and it shows then consequently whatever left is profit and that profit is Rs. 19,200 crore. This is the Modi Model of business crony capitalism - on Rs. 77,000 crore premium after making payments of farmer claims walk away with Rs. 19,200 crore of profit and the farmers claims are not yet settled."
The Congress also slammed the new parameter of "Restructured Weather Based Crop Insurance Scheme (RWBCIS)" In which the central subsidy under PMFBY and RWBCIS is to be limited for premium rates up to 30 per cent for unirrigated areas or crops and 25 per cent for irrigated areas. Crops and districts having 50 per cent or more irrigated areas will be considered as irrigated areas or districts.
The Union Cabinet on Wednesday approved to make the Pradhan Mantri Fasal Bima Yojana (PMFBY) voluntary for farmers, The scheme provides comprehensive crop insurance from pre-sowing to the post-harvest period against non-preventable natural risks at an extremely low premium of 2 per cent for kharif crops, 1.5 per cent for rabi crops, and 5 per cent for horticulture and commercial crops.
PMFBY is compulsory for farmers availing of crop loans and Kisan Credit Cards (KCCs) accounts for notified crops, while it is voluntary for others.
The decision at the Cabinet meeting, chaired by Prime Minister Narendra Modi, will lead to the revamp of PMFBY and to address the existing challenges in the implementation of crop insurance schemes.
It is proposed to modify certain parameters and provisions of the ongoing schemes of PMFBY and RWBCIS under which allocation of business to insurance companies will be done for three years.
"Options will be given to the states and Union Territories to choose the scale of finance or district-level Value of Notional Average Yield (NAY), that is NAY Minimum Support Price (MSP), as sum insured for any district crop combination (both PMFBY and RWBCIS). Farm gate price will be considered for the other crops for which MSP is not declared," a Cabinet statement said.
Source: IANS
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