Limiting Centre's share might push up state's burden for high-risk crops

The difference between the actuarial premium rate and the premium paid by farmers was the subsidy shared equally between the Centre and states

The Union Cabinet’s decision on Wednesday to limit the central subsidy under the Pradhan Mantri Fasal Bima Yojana (PMFBY) for premium rates up to 30 per cent in unirrigated areas and 25 per cent in irrigated areas has stirred up a hornets’ nest, with the Opposition Congress alleging it will push up the farmer’s share of premium.

However, official sources clarified that the latest tweaks to PMFBY will not push up farmer’s share in the premium, from the present 2 per cent of sum insured for kharif and 1.5 per cent for rabi. But it could definitely push up the