New Delhi, Jun 25: Suggestions have been invited from states on whether to make crop insurance optional rather than mandatory for farmers, the Lok Sabha was informed on Tuesday.
'In fact, yesterday only letters have been sent to states and union territories and suggestions have been invited on whether the crop insurance should be optional rather than mandatory for farmers. The government is in the process of examining the demands,' Minister of State for Panchayati Raj, Agriculture and Farmers Welfare Parshottam Khodabhai Rupala said responding to supplementaries during Question Hour.
Crop insurance is a major risk mitigation tool for the benefit of farmers. As per the provisions of Pradhan Mantri Fasal Bima Yojana or Restructured Weather Based Crop Insurance Scheme, premium from farmers along with Central and state government share in premium subsidy is paid to the insurance company concerned for acceptance of risk and payment of claims.Insurers save premium in good seasons and pay high claims, if any in bad years from the savings made in good years.
The scheme is made compulsory for the loanee farmers growing notified crops in notified areas and the scheme is voluntary for non-loanee farmers. Requests have been made from various quarters, including farmer organisations, and states to make the scheme voluntary or optional for all farmers, the Minister said.(UNI)