Food crops (cereals, millets and pulses), oilseeds, sugarcane, cotton & potato (annual commercial/horticultural crops) are covered under this scheme. All farmers including sharecroppers, tenants farmers growing the notified crops in the areas are eligible for coverage. The Scheme covers following groups of farmers:
On a compulsory basis: All farmers growing notified crops and availing Seasonal Agricultural Operations (SAO) loans from Financial Institutions i.e. Loanee farmers.
On a voluntary basis: All other farmers growing notified crops (i.e. Non-Loanee farmers) who opt for the Scheme.
50% subsidy in premium is allowed in respect of Small & Marginal farmers, to be shared equally by the Government of India and State / UT Govt. The premium subsidy will be phased out on sunset basis in a period of three to five years subject to review of financial results and the response of farmers at the end of the first year of the implementation of the Scheme.
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