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  1. Pradhan Matri Fasal Bima Yojana gets big boost; here’s how

Pradhan Matri Fasal Bima Yojana gets big boost; here’s how

The government’s move to roll out the Pradhan Mantri Fasal Bima Yojana (PMFBY) from the ongoing kharif season has got a boost with 18 agriculturally critical states, including Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Uttar Pradesh, Karnataka, Odisha and Maharashtra, having floated tenders to identify insurers who will offer the scheme to farmers.

By: | New Delhi | Updated: July 26, 2016 7:18 AM
For PMFBY, finance minister Arun Jaitley had allocated R5,501 crore in 2016-17 while R2,995 crore was allocated for various crop insurance schemes in the last fiscal. (Reuters)

For PMFBY, finance minister Arun Jaitley had allocated R5,501 crore in 2016-17 while R2,995 crore was allocated for various crop insurance schemes in the last fiscal. (Reuters)

The government’s move to roll out the Pradhan Mantri Fasal Bima Yojana (PMFBY) from the ongoing kharif season has got a boost with 18 agriculturally critical states, including Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Uttar Pradesh, Karnataka, Odisha and Maharashtra, having floated tenders to identify insurers who will offer the scheme to farmers.

According to agriculture ministry data, Rajasthan has completed the bidding process for identifying insurance companies from the 11 identified insurance providers comprising both public and private sector companies. Jammu and Kashmir will open its bids on July 27. The states need to complete the bidding process to identify insurance providers and types of the crops to be insured through fixing the ‘scale of finance’ for each crop by the end of July.

However, eight states, Punjab and the North-Eastern states, have not taken necessary measures for rolling out the mega crop insurance scheme which had reduced the premium to be paid by the farmers to 2% of the insured value for the more rain-dependent kharif crops like paddy, pulses and oilseeds and 1.5% for the rabi season, compared with 3.5-8% under the previous schemes. The premium for annual commercial and horticultural crops will be capped at 5%.

An agriculture ministry official told FE that those states which have not rolled out revamped crop insurance in the ongoing kharif season would be encouraged to take crop insurance in the next rabi season.

The Centre has named state-owned Agriculture Insurance Company of India (AIC) and 10 private companies for implementation of the mega scheme.

Meanwhile, many drought-hit states have increased the allocations under PMFBY significantly. Maharashtra has allocated a higher amount of R1,855 crore in the 2016-17 Budget for PMFBY, while only R725 crore was earmarked in 2015-16. Madhya Pradesh has allocated R1,898 crore for the next fiscal for the crop insurance which is substantially higher from the current fiscal. Karnataka, UP and Odisha too, have increased allocations for the crop insurance.

For PMFBY, finance minister Arun Jaitley had allocated R5,501 crore in 2016-17 while R2,995 crore was allocated for various crop insurance schemes in the last fiscal. The major subsidy burden for rolling out crop insurance would be borne by both the states and the Centre.

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  1. J
    Jivani Mahesh
    Jan 5, 2017 at 9:40 am
    Fasal vima aplikeshn in incvayri the purposes
    Reply
    1. S
      subbu
      Jul 27, 2016 at 2:41 pm
      The online portal for applying for insurance doesnt work and gives generic error message that data is not available after u fill all data and try to calculate insurance premium.is modi playing practical joke on farmers. Anyone who reads that guidelines uploaded on the PMFBY site can understand the hollowness of the scheme. it will help insurance compnaies make big money and add another useless input cost for farmers who are already facing rising input cost and falling prices and manitive trader in APMC's.The guidelines are the biggest joke as no specific official or agency or authority is specified to issue crop sown certificate.one side Jaitley is is becoming sman of insurance and annuity companies by trying to impose tax on EPF money if annuity is not purchased .Every one knows that the income from annuities in India doesnt even help cover inflation. the rate of return on annuities is about 25% of the rate of inflation.On other side MODI ji is becoming sman for insurance firms, even as he fails miserably in providing remunerative prices he farm produce.Time has come he stops governing through media and face reality of India.
      Reply

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