The Karnataka state government has decided to make PMFBY mandatory for those who procure loans from state run co-operative banks. Karnataka cooperation minister has said crop insurance will soon be the norm in the state.
Though the state is passing through a second consecutive drought year, the Pradhan Mantri Fasal Bima Yojana (PMFBY), a leading project of the Narendra Modi is still slowly gaining traction in the state, reports Times of India.
The PMFBY is applicable to all crops, barring sugarcane, coffee and tobacco which are considered cash crops, at varied rates of premium. With the co-operation department planning to increase its loan disbursal amount to Rs 11,600 crore to farmers, the scheme will also help keep their debt receivables in check.
The scheme has been launched on a 50:50 sharing basis between the Centre and state with the former providing Rs 675 crore and the latter pitching in with the same amount.
Official sources say only 12% of the total farming population in the state has enrolled for it. While the state has 78 lakh farmers, about 9.44 lakh farmers have signed up for crop insurance.