The Centre will release Rs 400 crore towards crop insurance for farmers of Gujarat this week, a state Minister said today.

"The Centre is going to release Rs 400 crore towards crop insurance for farmers of Gujarat on July 25 that will benefit around 2.5 lakh farmers of the state," Gujarat Minister of State for Agriculture, Mohan Kundariya said.

The farmers, who have paid crop insurance premium, will get the insurance amount, he added.

The minister said the crop insurance is for the year 2014 and the central government decided to release the amount after considering a proposal sent by the Gujarat government.

"Those farmers, who paid premium for their crop in the year 2014 and whose crops were damaged or faced total crop failure, will be given the benefit," he said.

"The farmers have been facing a tough situation due to the recent flash flood in Saurashtra region and our aim is to take them out of this condition by providing them insurance," Kundariya said.

The minister claimed that the Centre has also made arrangements to release separate funds for insurance of cotton crop failure insurance by the end of September.

Source - http://www.business-standard.com/