Centre plans livestock insurance scheme on the lines of PM’s Fasal Bima Yojana [Agriculture]
- After the crop insurance scheme that promises record low premiums for farmers, the central government is planning to come out with a similar scheme for livestock in which farmers’ share of premium would also be in the range of 1-2 per cent per annum.
- The new insurance scheme for livestock would provide protection to growers in case of livestock lost due to drought, floods, cyclones or any other natural calamities, including epidemics.
- PMFBY is one of the most ambitious pro-farmer measures of the Narendra Modi government. The maximum premium which the farmer has to pay under the scheme is a flat two per cent of sum insured for all kharif crops and 1.5 per cent for rabi crops.
- For horticulture and cotton crops, premium has been capped at five per cent. 25 per cent of the likely claim will be settled directly in the farmer’s accounts
- The scheme is being implemented from the current kharif season and as many as 22 states have started the process of inviting tenders or notifying the same.
- The Centre aims to bring 40 million farmers under the scheme. It has sought an additional Rs 11,000 crore to settle crop insurance claims this financial year under the scheme.