Crop insurance scheme designed to profit insurance companies: Chidambaram

File photo of former finance minister P Chidambaram. Photograph:( Reuters )

WION Web Team New Delhi, Delhi, India Nov 14, 2018, 09.40 PM (IST)

Congress leader and former finance minister P Chidambaram slammed the Modi government and said PM’s Fasal Bima Yojana (crop insurance scheme) was designed to profit the insurance companies at the cost of the farmers. 

''As we had cautioned, PM’s Fasal Bima Yojana (crop insurance scheme)
was designed to profit the insurance companies at the cost of the farmers,'' Chidambaram tweeted. 

Chidambaram claimed that the insurance companies made a profit of Rs 6460 crore in 2016-17. 

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''In 2016-17, insurance companies made a neat profit of Rs 6460 crore! Robbing the farmers to fatten the insurance companies,'' he said in another tweet. 

He said that in 2017-18, insurance companies will make even more profit.

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''In 2017-18, insurance companies are likely to make a profit of Rs 8000-9000 crore,'' he said in another tweet. 

''Is there any wonder that 84 lakh farmers have withdrawn from the scheme? And the bulk of them belong to Madhya Pradesh and Rajasthan that will vote shortly,'' he said in another tweet.