A fifth of Indian farmers covered under crop insurance scheme -Governance Now

A fifth of Indian farmers covered under crop insurance scheme

The government aims to hike insurance coverage of cropped area to 50 percent in next two to three years

GN Bureau | May 9, 2016

#farmers #suicide #crop insurance #cropped area

The implementation of the crop insurance scheme in the country is crucial as there has been a steady rise in the suicide of farmers. Currently, 20 percent of the farmers and 23 percent of total cropped area in country has been insured.

This information was given by the minister of state for agriculture Mohanbhai Kalyanjibhai Kundariya in Rajya Sabha on Friday.

Through Pradhan Mantri Fasal Bima Yojana (PMFBY), the ministry of agriculture and farmers welfare is aiming to increase the insurance coverage of cropped area to 50 percent in next two to three years.

Under the scheme, there will be a uniform premium of only 2 percent to be paid by the farmers for all kharif crops, 1.5 percent for all Rabi crops and 5 percent for commercial and horticulture crops. The balance premium will be paid by the government to provide full ensured amount to the farmers against crop loss on account of natural calamities.

There is no upper limit on government subsidy. Even if the balance premium is 90 percent, it will be borne by the government.

Earlier there was a provision of capping the premium rate which resulted in low claims being paid to farmers. Capping was done to limit government outgo on the premium subsidy. Now the capping has been removed so farmers can claim against full sum ensured without any reduction.

In addition, a Unified Package Insurance Scheme (UPIS) has also been approved for implementation on pilot basis in 45 districts of the country from Kharif 2016 season to cover the other assets/activities like machinery, life, accident, house and student-safety for farmers alongwith their notified crops (under PMFBY/ Weather Based Crop Insurance Scheme - WBCIS).

The Narendra Modi government launched Pradhan Mantri Fasal Bima Yojana (PMFBY) in January this year to replace National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS) from Kharif 2016. Premium rates under Weather Based Crop Insurance Scheme (WBCIS) have also been reduced and brought at par with new scheme.

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