In a letter to Modi, a copy of which was released to the media, the chief minister said the state witnessed a huge Growth in terms of area insured and enrolment of farmers due to the best practices adopted by the state under the scheme. However, the states share of the premium subsidy has increased at a compound annual growth rate of 28.7% in the last five years. This has stymied the very purpose of the scheme as the state is finding it difficult to sustain the continuance of the scheme due to increasing financial liability that too during this pandemic period, Stalin said.
Initially, the pattern of sharing in 2016-17 was 49:49:2 (central, state and farmers share respectively). The central share has now been capped at 25% for irrigated area and 30% for rain-fed area, resulting in an increase of the state share of the premium subsidy by 12%. In all, the states share becomes 61%.