Farm Income Insurance Scheme was conceived to provide income protection to the farmers by integrating the mechanism of ensuring production as well as market risks.
The farmer’s income would be protected by ensuring minimum guaranteed income.
The scheme was implemented on a pilot basis during Rabi 2003-04 in 18 selected districts of 12 States for wheat and paddy.
The scheme was also implemented in selected districts of four States on a pilot project basis during Kharif 2004 season.
The scheme provided income protection to the farmers by ensuring production and market risks.
The insured farmers were ensured a minimum guaranteed income (that is, average yield multiplied by the minimum support price).
If the actual income was less than the guaranteed income, the insured would be compensated to the extent of the shortfall by the Agriculture Insurance Company of India.
Initially, the scheme would cover only wheat and rice and would be compulsory for farmers availing crop loans.
NAIS (National Agriculture Insurance Scheme) would be withdrawn for the crops covered under FIIS but would continue to be applicable for other crops.
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