Crop Insurance Week – INSIGHTSIAS

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Topics Covered: Issues related to direct and indirect farm subsidies and minimum support prices. 

Crop Insurance Week: 

Context: 

Government has launched the Crop Insurance Awareness Campaign for Fasal Bima Yojana during the Crop Insurance Week (being observed from July 1 to 7). 

 

Performance of PMFBY: 

  1. Till date, the scheme has insured over 29.16 crore farmer applications (5.5 crore farmer applications on year-on-year basis). 
  2. Over the period of 5 years, more than 8.3 crore farmer applications have benefited from the scheme. 
  3. Moreover, Rs.95,000 crores claims have been paid as against Rs. 20,000 crore farmers share. 

 

About Pradhan Mantri Fasal Bima Yojana: 

  • It is in line with the One Nation – One Scheme theme- It replaced National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS). 
  • Launched in 2016. 
  • Coverage: All food & oilseed crops and annual commercial/horticultural crops for which past yield data is available. 
  • Premium: The prescribed premium is 2% to be paid by farmers for all Kharif crops and 1.5% for all rabi crops. In the case of annual commercial and horticultural crops, the premium is 5%. 

 

Objectives: 

  1. To provide insurance coverage and financial support to the farmers in the event of failure of any of the notified crops as a result of natural calamities, pests & diseases. 
  2. To stabilise the income of farmers to ensure their continuance in farming. 
  3. To encourage farmers to adopt innovative and modern agricultural practices. 
  4. To ensure flow of credit to the agriculture sector. 

 

Coverage:

The Scheme covers all Food & Oilseeds crops and Annual Commercial/Horticultural Crops for which past yield data is available and for which requisite number of Crop Cutting Experiments (CCEs) are being conducted under General Crop Estimation Survey (GCES).

 

PMFBY to PMFBY 2.0 (overhauled PMFBY): 

Completely Voluntary: It has been decided to make enrolment 100% voluntary for all farmers from 2020 Kharif.

Limit to Central Subsidy: The Cabinet has decided to cap the Centre’s premium subsidy under these schemes for premium rates up to 30% for unirrigated areas/crops and 25% for irrigated areas/crops.

More Flexibility to States: The government has given the flexibility to states/UTs to implement PMFBY and given them the option to select any number of additional risk covers/features like prevented sowing, localised calamity, mid-season adversity, and post-harvest losses.

Penalising the Pendency: In the revamped PMFBY, a provision has been incorporated wherein if states don’t release their share before March 31 for the Kharif season and September 30 for rabi, they would not be allowed to participate in the scheme in subsequent seasons.

Investing in ICE Activities: Insurance companies have to now spend 0.5% of the total premium collected on information, education and communication (IEC) activities.

 

Insta Curious: 

Have you heard of INSURED by IFAD? Read Here

 

InstaLinks:

Prelims Link:

  1. Key features of PMFBY.
  2. Benefits.
  3. Eligibility.
  4. PMFBY 2.0.

Mains Link:

Discuss the significance of PMFBY 2.0.

Sources: PIB. 

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