Farmers are facing economical crisis due to natural disaster, poverty, no rainfall, meager water supply level from the dam, etc. To overcome from the economic crisis, the central government had announces the new crop insurance scheme, pradhan mandhri fasal bhima yojana. The scheme has been announced as alter to the national agricultural insurance scheme and also to the reconstructed form of the national agricultural insurance scheme. Based on the full support rendered by the state government, the new scheme PMFBY will be amended. Ministry of agricultural and farmers welfare of the central government will undertake the activities of this scheme.
Crop insurance schemes since before enacted:
1985- Fully fledged crop insurance scheme.
1999 – National agricultural insurance scheme.
2007 – Crop insurance scheme based on monsoon season.
2010 – Resurrected national agricultural insurance scheme.
Reason for Prime Minister Fasal Bhima Yojana scheme:
Indian agriculture is suffering between el- Niño followed by poverty and rainfall during non seasonal rabbi season rainfall. So, in order to rescue the farmers from the un- uniformity seasonal changes, the crop insurance scheme is indispensible. Besides, about 25% of agricultural land from the total 194.4 million hectares is under crop insurance. To increase it to 50% is the ultimate goal of this scheme. Totally, 9500 crores are estimated to succeed this scheme.
- Insuring the farmer against the natural disaster and loss due fertilizer, diseased crop planting.
- Maintain their income by assuring their income and to continue with the farming business.
- To encourage the use of advanced technique and agricultural practices.
- Assurance of agricultural loan to continue farming.
Prime minister crop insurance scheme 2018 – special features:
Lowest premium, insurance on the income of farmers, land mark and telescopic satellite technique to calculate the damage caused to the crop and to claim for insurance, attaining the insurance amount easily and quickly are the characteristic features of PMFBY scheme compared to the other crop insurance scheme. Many other special features of PMFBY are:
A particular insurance company is eligible to undertake step of this scheme. Agricultural insurance company of India. Ltd alone is eligible to undertake the activities of this scheme in the district Erode.
Unit of insurance for the ultimate crop is enlarged whereas the other crops like ragi, corn, millets, etc are considered as the small circle crops according to this scheme and as not in other crop insurance scheme.
While announcement of Rabi season in the villages, paddy, maize corn, toor dhall, urad dhall, moong dhall, banana, onion, etc are allowed to crop. Whereas, in the small circle crop millets, ragi, corn, etc are allowed to crop.
Seasonal insurance time period to insure in this scheme is same for those who get claim and those who do not.
All the farmers can join in this PMFBY scheme no matter consider whether they have got crop loan or not. Those who benefitted with crop loan are must to participate and those who do not are not compelled.
National agricultural insurance scheme allot insurance amount only to the damages crop level while harvesting and not for the entire field. Whereas farmers who join PMFBY are benefitted as follows:
- Fails or inability to cultivate the crop.
- Disaster while cultivation period like poverty, flood, dry climatic conditions, flood water stagnancy, attack of weeds and pests, etc.
- Disaster after harvesting, a part of land damages, flood and fauna, flood water stagnancy, etc are the other reasons to claim insurance right from the time of cultivation.
- Insurance start time period, allotted minimum time period alone. ( should register before the start of season or after the cultivation over)
- Three different indemnity levels- 70%, 80%, 90% respectively indicating maximum, average, minimum damage level of disaster is calculated with the previous period damage level and classified.
- Erode district is considered as the low level damage district. Also the indemnity level is calculated to about 90%.
- Average yield is multiplied with the guaranteed damage to get the guaranteed yield. Generally, the average yield is calculated from the past 7 years of yield by neglecting the 2 years of yield due to disaster. Remaining 5 years of yield is taken into consideration.
- For the economically improved village, crop damage is calculated by taking four out of one crop and tested for damage level.
- Premium is accepted, commercially, from the farmers. However, farmers pay 2% insurance premium in carry season and 1.5 % premium in rabbi season. Whereas 5% of premium, in case of, horticultural crop.
- The calculated premium amount rendered by the farmers will be equally halved by the central and state government.
- Premium subsidy is also paid, commercially, which varies district wise. District facing heavy natural disaster receive more while those facing less disaster will receive less subsidy.
- Actual crop loan or the lowest support value from which the calculated yield got the sum insured is claimed.
- State government should release 50% of insurance amount before the season starts and according to the list of approximate request of subsidy, how much the insurance company claim for? While the rest should be paid during the season.
- Crop harvesting test results for the past 7 years, neglecting 2 years of lowest average yield and calculated with the remaining 5 years of average yield the damage level is predicted.
- The insurance company will issue the full crop damage insurance claim. The state and central government will not share in this amount. 350% of damage claim, calculated based on national level, is remitted by the insurance company.
Procedure to issue claim and time period:
- 25% of insurance is claimable if there is no rainfall before and after cultivation.
- To spread the grain on the field after harvesting and disaster due to flood, season failed rainfall, storm are claimable.
- Department of statistics should issue the insurance claim within 60 days of time period.
So, to get benefited under this scheme for the cultivation of crops belonging to agricultural department like paddy, sprouts, oil seeds, grains, cotton are requested to approach agricultural department officer. Whereas for the horticultural crops like banana, tubers, chilly, onion to approach the horticultural department officials for effective guidance. Application forms and the Chelan for it can be obtained from the nationalized and co-operative banks.