It is proposed to modify certain parameters and provisions of the ongoing schemes of PMFBY and RWBCIS under which allocation of business to insurance companies will be done for three years. “Options will be given to the states and Union Territories to choose the scale of finance or district-level Value of Notional Average Yield (NAY), that is NAY Minimum Support Price (MSP), as sum insured for any district crop combination (both PMFBY and RWBCIS). Farm gate price will be considered for the other crops for which MSP is not declared,” a Cabinet statement said.

The central subsidy under PMFBY and RWBCIS is to be limited for premium rates up to 30 per cent for unirrigated areas or crops and 25 per cent for irrigated areas. Crops and districts having 50 per cent or more irrigated area will be considered as irrigated areas or districts.