The move is aimed at increasing the coverage in the northeastern region enabling farmers to manage their agricultural risk in a better way.
To cut the risk in agriculture production and stabilise the farm income, the government has approved revamping of two of its flagship schemes. Addressing the existing challenges in the implementation of Crop Insurance Schemes, the Union Cabinet, chaired by Prime Minister Narendra Modi has modified Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS). The move is also aimed at increasing the coverage in the northeastern region enabling farmers to manage their agricultural risk in a better way, said the official statement. Further, these changes are proposed to be implemented from Kharif’ 2020 Season throughout the country. The changes are also expected to enable quick and accurate yield estimation leading to faster claims settlement.
According to the modifications, the allocation of business to insurance companies will be done for three years under both the schemes and the option shall be given to the states/UTs to choose the scale of finance. Also, the farm gate price will be considered for the other crops for which MSP is not declared. The states/UTs will also be given the flexibility to implement the Scheme with the option to select any or many additional risk covers like prevented sowing, localised calamity, mid-season adversity, and post-harvest losses. Further, they can offer specific single peril risk covers, like a hailstorm, etc, under PMFBY.
In another major change, the centre’s share in premium subsidy is to be increased to 90 per cent for the north-eastern states from the existing sharing pattern of 50:50 under both the schemes. Also, the provisioning of at least 3 per cent of the total allocation for the scheme is to be made by the government for administrative expenses. However, enrolment under both the scheme is to be made voluntary for all farmers