State Govt Looking To Set Up Crop Insurance Trust

The Maharashtra government is exploring the possibility of setting up a state-run crop insurance trust to provide direct financial assistance to farmers affected by natural calamities such as floods, excessive rainfall and drought.

- Press Trust of India

MUMBAI:

This initiative aims to replace the existing system of private crop insurance companies, which has faced criticism from political parties and farmer groups for alleged inefficiency and profiteering, an official said.

"Under the current framework, farmers pay a nominal premium of Rs 1 to a state-designated insurance company, which records their crop details. The state government determines the crop value, and in the event of a natural disaster, the insurance company, in collaboration with local revenue and agriculture officials, assesses the damage and compensates the farmer," he said.