During a session in Parliament, Union Minister for Agriculture & Farmers’ Welfare and Rural Development, Shivraj Singh Chouhan, addressed the challenges faced by previous crop insurance schemes and highlighted the improvements introduced under the Pradhan Mantri Fasal Bima Yojana (PMFBY). Responding to questions during Question Hour, Chouhan noted the issues with earlier schemes, including high premiums, delays in claim settlements, and various objections from farmers and organisations.
Chouhan stated, “There were many difficulties in the previous crop insurance schemes.” He attributed the success of the new scheme to increased trust among farmers, as evidenced by the rise in applications—from 3.51 crore to 8.69 crore since the scheme’s introduction. Applications from non-loanee farmers have also surged from 20 lakh to 5.48 crore. Overall, the total farmer applications have grown from 3.71 crore to 14.17 crore, with farmers paying a premium of Rs 32,440 crore and receiving claims amounting to Rs 1.64 lakh crore.
One significant change highlighted by Chouhan was the removal of the compulsory nature of insurance, which had previously been automatically deducted by banks. He explained, “Our government has removed this anomaly. Now, if the farmer wishes, he can get insurance, and if he does not wish, he should not.” The new scheme also allows debt-free farmers to opt for insurance, covering 5.98 lakh hectares in 2023, up from 5 lakh 1 thousand hectares.
The government has implemented several measures to streamline the scheme, ensuring farmers face minimal obstacles in availing themselves of the benefits. Notably, crop damage will now be assessed through remote sensing technology, with at least 30 percent of the assessment required to be non-visual. Chouhan addressed concerns about delays in claim payments, stating that insurance companies would incur a 12% penalty for any delays, which would be directly credited to the farmers’ accounts.
Dear Reader,
Every day, our team at EastMojo travels through rain, rough roads, and remote hills to bring you stories that matter – stories from your town, your people, your Northeast.
We do this because we believe in truthful, independent journalism. No big corporate backing, no government pressure – just honest reporting by local journalists who live and breathe the same air you do.
But to keep doing this work, we need you. Your small contribution helps us pay our reporters fairly, reach places others ignore, and keep asking the tough questions.
If you believe the Northeast deserves its own fearless voice, stand with us.
Support independent journalism. Be a Member.
Thank you,
Karma Paljor
Editor-in-Chief, eastmojo.com
Chouhan urged state governments to expedite the release of their share of the premium subsidy, pointing out that delays from the states often cause holdups. He announced a new provision where the central government would release its share independently of the state’s contribution, ensuring timely payments to farmers.
The Minister clarified that the Pradhan Mantri Fasal Bima Yojana is available to every district and farmer across the country, with three different models for states to choose from. The scheme is not mandatory, allowing states to opt in based on their preferences. He noted that Bihar has yet to implement PMFBY, as the state operates its own crop insurance scheme to support its farmers.
Also read | Nagaland: Rengmas seek Tseminyu CHC upgrade to District Hospital