This scheme is set up to help protect farmers from the effect of natural disasters to their crops. If a farmer’s crop fails for natural reasons, the scheme helps to cover the loss of the crop. It also guarantees his continuing credit eligibility with financial institutions/banks. It is mainly designed to help farmers growing cereals, pulses and oil seeds.

• 50% of the insurance premium is subsidised for small and marginal farmers
• If the value of the crop falls short of the guaranteed yield for the area, the shortfall will be covered by the scheme. This only applies if the crop was insured.
• The premium is 2% for wheat, paddy and millets, and 1% for oilseeds and pulses of the amount insured for. For example, if you grow wheat and insure it for Rs.10,000 then you have to pay Rs.200
• Farmers who have taken a crop loan are eligible for this scheme.
• The maximum limit for the crop insurance is the amount of the crop loan but not more than Rs.10,000

Contact:

The DRDA, Panchayat.