Stalin urges PM to remove the cap on Central share in crop insurance scheme© indianexpress.com

Stalin urges PM to remove the cap on Central share in crop insurance scheme

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Chief Minister M.K. Stalin on Thursday wrote to Prime Minister Narendra Modi urging him to take necessary action urgently to remove the cap on the Centre’s share in premium subsidy under the Pradhan Mantri Fasal Bima Yojana (PMFBY), and revert to the 49:49:2 ratio premium share for the welfare of the farming community. Its financial implications on Tamil Nadu were causing a lot of concern, he said.

Though the pattern of sharing in 2016-17 was 49:49:2 (i.e., Central, State and farmer’s share respectively), the Central share had been capped at 25% for irrigated area and 30% for rain-fed area, leading to a large increase in the State’s share in premium subsidy by 12% (totally 61%), he said in the letter. A copy of the communication was shared with the media.

“In money value, the State’s share in the premium subsidy, which was only ₹566 crore in 2016-17, has increased by 239% to ₹1,918 crore during 2020-21, after the capping of the Central share in premium subsidy. This further increased to ₹2,500 crore during 2021-22 due to exorbitant actuarial premium rates (APR) quoted by insurance companies empanelled by the Government of India. Thus, the financial implications on the State are causing a lot of concern,” Mr. Stalin said.