Lok Sabha Question No. 6088 (UNSTARRED), answered on 2017-04-11
Subject: Compensation for Crop Damage
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: PREM SINGH CHANDUMAJRA

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO. 6088

TO BE ANSWERED ON THE 11 TH  APRIL, 2017

## COMPENSATION FOR CROP DAMAGE

6088.  PROF. PREM SINGH CHANDUMAJRA:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether crop insurance is being done to compensate for crop damage in the country for the last few years;
- (b) if  so,  the  facts  thereof  and  the  total  amount  of  premium  required to  be  paid under  the crop  insurance  scheme  during  the  year  2013-14  along  with  the  total  area  of  the  sown  land covered under the scheme;
- (c) the details of the premium required to be paid during the year 2016-17 and the total area of the sown land brought under the scheme; and
- (d) the details of the percentage of hike in premium rate registered during the said period?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI PARSHOTTAM RUPALA)

- (a)  to  (d):    Different  Government  sponsored  crop  insurance  scheme  have  been  under implementation  in  the  country  since  1985    to  compensate  insured  farmers  for  crop  damage. During  2013-14,  an  umbrella  scheme  of  National  Crop  Insurance  Programme  (NCIP)  was introduced  which  had    three  component  schemes  namely,  Modified  National  Agricultural Insurance Scheme (MNAIS), Weather Based Crop Insurance Scheme (WBCIS) and Coconut Palm Insurance Scheme (CPIS).  In addition, National Agricultural Insurance Scheme (NAIS) which was to be withdrawn after implementation of NCIP, was also allowed to be implemented on request, by some States till 2015-16.  Thereafter, from Kharif 2016, the then extant schemes were  substituted  with  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)/Restructured  Weather Based Crop Insurance Scheme (RWBCIS).  CPIS continued to be  implemented  and Unified Package Insurance Scheme (UPIS) was launched on pilot basis in 45 districts.

During 2013-14, NCIP operated on actuarial premium regime with premium subsidy upto 75% of premium.  Farmers however, had to pay only upto 6% premium.  Under NAIS , which was also under implementation in 2013-14, flat premium rates for normal coverage of food and oilseeds crops, ranged between 1.5% to 3.5% of sum insured and actuarial rate of premium were charged in case of annual commercial/horticultural crops and in case of food and oilseed crops if farmer opted for sum insured/indemnity level higher than that of normal.  10% premium subsidy was available only for small and marginal farmers.  Further, even within the actuarial premium rate for farmers there were variations from area to area and crop to crop depending on the  risk.    During  2013-14,  427.49  ha.  area  was  covered  under  aforesaid  crop  insurance schemes.

During 2016-17, under PMFBY and RWBCIS the premium on  actuarial  basis continued. However, the premium rates  to be paid by farmers have been reduced immensely  and are maximum 1.5%, 2% and 5% for Rabi food & oilseed crops, Kharif food and Oilseed crops and annual commercial/horticultural crops respectively and the balance premium is subsidized by the Government, shared equally by both Centre and States.  Tentative coverage of area during 2016-17 is  511 lakh ha.

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