The plans to introduce a new agriculture compensation insurance policy on a proposal by the 2018 Budget.
With the budget proposal, it has been proposed to increase the compensation amount from Rs.10,000 to Rs.40,000 per acre for damage caused by drought, floods or landslides.
Accordingly, paddy, corn, soya beans, big onions, potato and chilli farmers are eligible to join the new agriculture compensation scheme. The Government allocated Rs 3,000 million from the budget for this scheme. Prior to this, only paddy cultivators were entitled to agriculture compensation for crop damage and the compensation was limited to Rs. 10,000 per acre.
The Agriculture Insurance Scheme will be a huge benefit for around 2.5 million farmers.