Maharashtra will probably choose to leave PMFBY

After this, the center had written to state governments that were looking for their views, including the "Formula of Beed" as an option under PMFBY.

Officials from the Senior Agriculture Department, who were present for the review meeting called by State Agriculture Minister Dadasaheb Bhuse a couple of days ago, revealed that the movements are underway to leave the plan after receiving complaints about Delays in the payment of claims of insurance companies.

It is likely that the Government of Maharashtra Off outside the center's crop insurance plan: Pradhan Mantri Fasal Bima Yojana (PMFBY), and establish his own crop insurance company for farmers, after several representations of farmers.

Officials from the Senior Agriculture Department, who were present for the review meeting called by State Agriculture Minister Dadasaheb Bhuse a couple of days ago, revealed that the movements are underway to leave the plan after receiving complaints about Delays in the payment of claims of insurance companies.

At the meeting, farmers and agricultural leaders argued that the assessment of crop damage under the scheme was defective and farmers have to fight to obtain their compensation from insurance firms. This rabi season, around 12.50, the Lakh farmers participated in the scheme and, normally, more than 1 Crore requests from farmers are received under the seasons of Kharif and Rabi. After listening to the representations of farmers' organizations, the State Agriculture Minister directed officials to study the problem and write a proposal on these lines. Due to several defects in the PMF, the losses incurred during the last two Kharif and Rabi seasons have not been compensated. Insurance companies still owe RS 271 crore in insurance claims for 2020 season officials. RS insurance claims 2,800 million rupees for Kharif 2021 are still working, said.

States and UTs can participate in the scheme while maintaining their perception of risk and financial considerations. Since the beginning of the plan, 27 states and UTS implemented the PMFBY in one or more seasons. Under PMFBY, the premium to pay for farmers is set at 1.5% of the amount insured for rabi crops and 2% for Kharif crops, while it is 5% for cash crops. The bonus of the balance is also divided between the center and the states. Many States have demanded that their part of the premium subsidy be limited to 30%. Already, Gujarat, Andhra Pradesh, Telangana, Jharkhand, West Bengal and Bihar have come out of PMFBY, citing the cost of the premium grant by them. Madhya Pradesh and Tamil Nadu have adopted Beed Formula in several districts.

After this, the center had written to state governments that were looking for their views, including the "Formula of Beed" as an option under PMFBY. Under the 'Beeded formula', also known as Plan 80-110, the potential losses of the insurer are circumscribed: the firm does not have to entertain the claims above 110% of the gross premium. The insurer will reimburse you the premium surplus (most important premium premium claims) that exceeds 20% of the brute premium to the state government. The state government has to bear the cost of any claim above 110% of the premium compiled to isolate the loss insurer, but a higher level of claims rarely occurs, so States consider the formula in effect Reduce your cost to execute the scheme. Bhuse said the government of Maharashtra had written to the center seeking the inclusion of the "Beeded Formula", but it did not happen long after that. In December of last year, the Center appoored two groups of separate experts to suggest adequate work models with cost-cost analysis that will reduce crop insurance premium and technology in the crop performance estimate under PMFBY after The output of several states of the scheme, citing the high premium.