Telangana And Jharkhand Decided Not to Participate In Pm Crop Insurance Scheme

The States of Telangana and Jharkhand have decided to come out of Prime Minister crop insurance scheme, this was reported in Economic Times, The reason for these 2 states opting out because of a high premium.

The central government made the scheme voluntary for the farmers and increased the premium 2 to 3 %.

Under this scheme, the farmers will have to contribute 2% and rest have to be paid by the central government and states equally.

Before these 2 states opting out Andhrapradesh, Bihar, West Bengal and Punjab have already come out of this Scheme.  

The main reason for states coming out of this scheme is that the provision which states that the central government provides 30% premium for non-irrigation and 25% for irrigation areas which makes states and farmers pay the required balance of the premium.