Maharashtra Cabinet appoints sub-committee for effective crop insurance scheme

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Mumbai, Jan 15, 2020 – The state Cabinet on Wednesday gave its nod for setting up cabinet sub-committee for taking measures and policy decisions regarding Rabbi season for 10 districts where insurance company has not yet been appointed for the Rabbi season 2019.

The committee would also suggest necessary measures if similar situation arises during 2020 Kharif season regarding crop insurance and horticulture crop insurance. The committee would also suggest measures to remove any errors in present scheme with respect to crop insurance.

The crop insurance scheme was being implemented to ensure sustained income for the farmers especially in view of the vagaries of the uncertain weather conditions with land holding was the basic factor while running the scheme. The scheme was improved and since 2016 the Pradhanmantri agricultural insurance scheme was implemented in the state.

The Union Government has identified 18 insurance companies and implementing authority is selected by e-tendering at district level n the state. ICICI Lombard Insurance, Tata AIG General Insurance, Cholamandalam General Insurance and Sriram General Insurance have stopped their participating in the scheme at National level.

Due to various hurdles in implementation there is ever reducing response from the insurance company for the scheme every season. Despite the fact that increasing farmers are responding to the crop insurance scheme and despite the rise in insurance installment subsidy, there are rising complaints from the farmers about not being able to avail the crop insurance.

Since there is no response from the insurance companies for the Rabbi season 2019, it is not possible to implement the scheme in 10 districts so far. Despite the process of re-tendering, there has not been response from the insurance company and that is the reason there is a need to plan for the crop risk management in these 10 districts. If at all similar situation arises in ensuing Kharif season, the state Cabinet has appointed the Cabinet sub-committee.