Industry And Cluster | News & Insights

Haryana State Govt. Withdraw Subsidy on Cotton Crop Insurance Premium

Published: July 25, 2020
Author: Millionaires

 

Haryana chief minister Manohar Lal Khattar on Friday clarified that his government cannot continue subsidy on cotton crop premium under the Pradhan Mantri Fasal Bima Yojana (PMFBY).

 

While interacting with reporters here, Khattar said the state government had given 3% subsidy on the premium amount for cotton crop since the last two years but this year they have decided to withdraw it. “Cotton is a commercial crop and the farmers are required to pay 5% of the amount insured as premium. This year, our government has decided to pay premium for those farmers who have been switching over to other crops from paddy in specific zones,” the CM said.

 

HT had earlier reported that cotton growers in Haryana are a worried lot as their share of premium under the Pradhan Mantri Fasal Bima Yojana has been increased from Rs 620 per acre to Rs 1,650 this time after the state government withdrew 3% subsidy provided on the premium.

 

Under PMFBY guidelines, a farmer is required to pay 2% of the sum insured in case of kharif crop and 1.5% in case of rabi crop (5% for horticulture crop) as the premium and the balance is shared 50:50 by the state and the Centre.

 

This year, farmers’ premium share under the government insurance scheme was hiked up to Rs 50 per acre for paddy, Rs 10 per acre for maize, Rs 40 per acre for bajra, Rs 1,030 per acre for cotton, Rs 8 per acre for barley and wheat, Rs 15 per acre each for gram and sunflower and Rs 130 per acre for mustard.

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