FM Sitharaman stresses on subsidy releases for timely claim settlement under PMFBY

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Updated: Jul 14, 2020 9:09 AM

Under the PMFBY, farmers pay a fixed 1.5% of sum insured for rabi crops and 2% for kharif, while it is 5% for cash crops. The balance premium is paid by the Centre and states in a 50:50 ratio.

In a review meeting of implementation of PMFBY, FM Sitharaman highlighted the need of carrying out awareness activities to ensure dissemination of information among all farmers

Finance Minister Nirmala Sitharaman on Monday directed officials to follow up with states if and where subsidy releases are pending, particularly in those states which are not implementing the flagship Prime Minister Fasal Bima Yojana (PMFBY) in kharif 2020.

The agriculture ministry on June 30 had written to the states to invoke the penalty clause on insurance companies that have defaulted on settling the claims made by farmers as insurers are yet clear as much as a third of the over Rs 15,000 crore claimed by farmers as crop insurance for the Kharif 2019 season, even as the new summer season began on July 1, FE reported last week.

In a review meeting of implementation of PMFBY, she highlighted the need of carrying out awareness activities to ensure dissemination of information among all farmers in view of scheme becoming voluntary for all farmers from this kharif season. Challenges and the status of implementation of the scheme for the current season were discussed.

The Centre has been now focussing on adoption of technology in PMFBY and working towards migrating to technology assessment of yield by 2023. A survey would be conducted after rabi 2020-21 season to ascertain the impact of the revamped PMFBY, officials said. Under the PMFBY, farmers pay a fixed 1.5% of sum insured for rabi crops and 2% for kharif, while it is 5% for cash crops. The balance premium is paid by the Centre and states in a 50:50 ratio. The premium is decided through a bidding process every year. However, effective from this season the Centre has allowed states to fix premium for 3 years.

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