Gujarat CM announces Mukhya Mantri Kisan Sahay Yojana for current Kharif season, replacing PMFBY

The Gujarat government under Chief Minister Vijay Rupani has announced a new scheme called Mukhya Mantri Kisan Sahay Yojana, which will replace the Central governments’s Pradhan Mantri Fasal Bima Yojana (PMFBY) for this fiscal year (2020-21) only.
Under this new scheme, farmers facing crop losses due to drought, excess rain or unseasonal rain will get compensation.
Also, the best thing about this scheme is that no premium will be collected from the farmers, as was needed in PMFBY.
It will cover all the 56 lakh farmers of the state, unlike the PMFBY, where on an average, 15-17 lakh farmers who applied for crop insurance, used to be covered.
However, the new insurance scheme will be restricted to crop losses happening during the ongoing Kharif season only and the insurance coverage will be up to a maximum of four hectares of land.
Note: The decision to launch the new scheme was taken as the insurance companies have quoted very high premium rates for this year under the PMFBY, which will entail a burden of Rs 5,700 crore on both the state and the Centre. Earlier the state and central government used to pay premiums between Rs 1,700 and 1,800 crore. Due to this, the state has decided to scrap the PMFBY for this year.