Central Government has proposed a new policy to provide a safety net to growers of pulses to boost production. New crop insurance policy has reduced the premium on pulses at two per cent of the sum insured.
Earlier the farmers have to anything in between 5-6 percent of the sum insured. The new scheme also reduced premium for non-horticultural products to 2-3% The difference between the actual premium charged by the insurance company and what the farmer pays will be subsided by the Centre. The scheme would be a combination of weather-based and yield-based insurance for crops. The financial burden on insurance companies would also be minimised as participants would be invited through open tenders conducted by the state governments.