10-07-2025
Crop insurance nos dip sharply as Rs1 scheme ends
Nagpur: There as been a sharp decline in applications for getting crop insurance cover so far during the current Kharif season. This coincides with the state govt's move to do away with the Re1 crop insurance from this year onwards.
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Sources said that scrapping of the Re1 scheme is expected to be one of the major reasons for farmers losing interest in getting cover for the crops.
The number of applications received till July 10 is less than 5% of those received during the same period last year. Vidarbha is divided into Nagpur and Amravati divisions, covering the eastern and western districts of the region respectively. The state's agriculture department had received a little over 20,000 applications as of July 10 in the Nagpur division this year.
In contrast, over 6.5 lakh applications were received by the department in the same period last year.
In the Amravati division, over 85,000 applications have been received; last year, this figure had crossed 17 lakh within two weeks of July, said sources citing the official data.
Applications can be made till July 31, though last year it was extended till the end of August. Normally, the numbers increase as the deadline nears; however, the year-on-year data shows a marked decline till now, accept officials.
Last year, more than a crore applications were received for crop insurance in the entire state when it was available for a nominal charge of Re1 to the farmers. In Nagpur and Amravati divisions, the applications stood at 14.56 lakh and over 29 lakh respectively.
A single farmer can make more than one application for separate plots of land. Now, the premium ranges anywhere from Rs500 to 800 per hectare for the staple crops of the region like cotton, tur, and soyabean.
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The state scrapped the Re1 as large-scale frauds were reported, with cases of even open land being insured.
The mechanism of measuring the losses has also been changed this season. Earlier, even localised calamities, a drop in yield due to delay in sowing, or a mid-season crisis were also covered. Now, the state has reverted to the age-old crop cutting experiment system. The harvest in random plots in each revenue circle is measured.
The insurance payment is triggered if the output in these plots falls below the predetermined threshold yield.
Vijay Jawandhia, a veteran farm activist, says this indicates that the farmers are not confident about the insurance scheme. Many think that it's difficult to get compensation under the current norms. The premium may still be within Rs800 a hectare, but they don't appear to be keen on spending even that much, he said.
