Govt considering plans to waive off farmers’ premium in crop insurance

The Centre is contemplating several choices which include “zero or token premium of Re 1” for the 12 crore tiny and marginal farmers underneath the flagship Pradhan Mantri Fasal Bima Yojana (PMFBY) amid numerous States expressing their dissatisfaction, some even had previously give up the plan because of to monetary load.

“We are open up to any choice for the betterment of the scheme. The doing work group has been established up for the purpose and they will attract up monetary projections on a variety of possibilities,” mentioned a senior formal of the agriculture ministry. Nevertheless, the important concern is the point out share of premium subsidy as it will go up with the greater participation of farmers, dependent on the current recommendations, the official explained.

Dual top quality solution

Another selection underneath thing to consider of the group is to have twin high quality for the insured total so that farmers are not burdened and monetary burden on States ease, sources reported. “If the liability of insurer is set at 50 for every cent of the assert quantity, the high quality will dramatically cut down in which circumstance farmers’ share can be completely waived off,” an field resource privy to the deliberations explained. But there is also to be a system readily available to shell out 100 for each cent assert volume, he added.

In check out of about 17 for each cent of agricultural land leased out, which is as higher as 42 for each cent in Andhra Pradesh, the governing administration may also relieve rules to empower lessee farmers acquire the reward of crop insurance policy. However they are allowed to enroll beneath PMFBY by exhibiting documentary evidence of contract farming, it is primarily absent as many farmers desire to do it with no file.

Underneath PMFBY, the balance quality is break up similarly in between the Centre and states just after farmers pay a preset quality – 1.5 per cent (of sum insured) in Rabi period, 2 for each cent in kharif and 5 for every cent for funds crops. The quality is arrived at dependent on quotations from insurance companies in a cluster. The Centre has capped highest high quality at 30 for every cent in non-irrigated regions, 25 for every cent in irrigated parts.

Lots of professionals have pointed out quite a few anomalies in the scheme owing to which farmers, Point out governments and insurance coverage companies are not delighted with the latest coverage. For instance, in Uttarakhand the farmers share of premium in Kharif 2019 was ₹6.04 crore whilst the Centre and Condition share of subsidy was about ₹94 lakh despite govt bearing 90 per cent of the subsidy for the reason that it is hilly condition.

“Such micro concerns are unable to be brushed aside if PMFBY is to be created acceptable universally throughout all the states. Know-how pushed generate assessment really should be created necessary and the Centre have to undertake this workout from its personal fund with the concurrent of the Condition federal government,” stated a former Union Agriculture Secretary.

States exited central plan

Gujarat, Andhra Pradesh, Telangana, Bihar, Jharkhand and West Bengal have now exited from the Central scheme launching their have though Maharashtra is weighing the execs and downsides of withdrawal.

Officials position out that crop coverage is necessary to mitigate hazard of the farmers, but the consciousness level is very minimal due to which even several farmers believe that there has to be some returns for their top quality even if there is no crop reduction. In Lok Sabha last December, an MP required to know if quality will be lifted by the authorities in perspective of calamities, the official claimed, introducing quite a few folks are not knowledgeable that premiums are made the decision by means of bids.

Released on


February 06, 2022