The programme aims at providing a guaranteed income to farmers by insuring their crop yield and produce sale realisation through a single policy instrument.
A meeting of the concerned district collectors and state agriculture secretaries was convened here on Thursday by agriculture minister Rajnath Singh.
Under the programme, if the actual income fell short of the guaranteed income, the farmer would be eligible for a compensation to the extent of indemnity from the Agricultural Insurance Company (AIC).
A premium subsidy of 75 per cent was proposed for small and marginal farmers and 50 per cent for other farmers. The subsidy for the pilot project will be paid by the Centre.
Some states objected to the calculation of guaranteed income on the basis of yield and minimum support price (MSP) of the past seven years as it would not capture the growth in farm production.
Some other states wanted the area stipulation for calculating crop yield and income to be the village, rather than the block.
The districts in which income from wheat would be insured under the pilot project included Buxar in Bihar, Banaskantha in Gujarat, Rewari in Haryana, Hamirpur in Himachal Pradesh, Jammu in Jammu and Kashmir, Hazaribagh in Jharkhand, Parbhani in Maharashtra, Sangrur in Punjab, Mirzapur, Faizabad and Mathura in Uttar Pradesh and Udham Singh Nagar in Uttaranchal.
The districts for paddy included Warangal in Andhra Pradesh, Kamrup in Assam, Mysore in Karnataka, Cuttack in Orissa, Madurai in Tamil Nadu and Burdwan in West Bengal.
Representatives of the NABARD, the AIC and the National Cooperative Development Corporation participated in the meeting.
