The move is an attempt to stem rural distress as farmers are facing three successive crop failures due to inclement weather conditions.
- Rate of premium will be about 1/10th of existing rates. Currently farmers are paying as high as 25% which is not affordable for marginal farmers.
- It will help cover about half of all farmers in the next 3 years.
- Also put to use mobile phones to assess crop yields and cut down payout delays.
- Low penetration of crop insurance schemes, lack of awareness coupled, high premium rates and lower claim payments are the major concerns before the government.