Lok Sabha Question No. 5804 (UNSTARRED), answered on 2018-04-03
Subject: Revision in Funding Pattern of PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: LADU KISHORE SWAIN

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

## LOK  SABHA

## UNSTARRED QUESTION NO. 5804

TO BE ANSWERED ON THE 3 RD   APRIL, 2018

## REVISION IN FUNDING PATTERN OF PMFBY

## 5804.  SHRI LADU KISHORE SWAIN:

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

- (a) the  steps  taken  by  the  Government  to  revise  the  funding  pattern  in  PMFBY  to  60:40 between the Centre and State like other central sector schemes;
- (b) the  necessary steps  taken  by the Government for provision of contingent funds under PMFBY for smooth implementation of the scheme;
- (c) whether  the  Government  is  considering  to  provide  greater  operational  flexibility  to  the States and if so, the details thereof; and
- (d) the  details  of  the  necessary  steps  taken  by  the  Government  for  imparting  capacity building  of  State  officials  and  bank  officials  regarding  implementation  of  crop  insurance scheme?

## 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): Though the scheme is a Central Sector Scheme, however, keeping in view the significant    stake  of  the  States  in  securing  the  interest  of  their  farmers,  they  are  required  to share equally the  premium  subsidy  with  the  Central  Government.    As  such  there  is  no  such proposal  under  consideration  for  revising  the  funding  pattern  in  Pradhan  Mantri  Fasal  Bima Yojana (PMFBY) to 60 : 40 between Centre and States.

Keeping in view the stake of the States in the successful implementation of the scheme, the  States  that  opt  for  the  scheme  have  been  given  maximum  operational  flexibility,  viz.    in deciding  the  crops/areas  to  be  covered  and  the  indemnity  levels,  cut-off  dates  within  the seasonality  discipline  etc.      The  States  provide  past/  present  yield  data  for  determination  of actuarial premium rates and claim amounts.  State Governments also prepare clusters of their districts  through  appropriate  risk  classification  for  minimization/  rationalization  of  actuarial premium  and  selection  of  implementing  insurance  companies,  whether  public  or  private, through transparent bidding process based on the lowest premium rates (L-1) quoted by them. They also conduct Crop Cutting Experiments (CCEs) and furnish CCE data for calculation of claims  etc.        Overall  powers  for  scheme  implementation  and  monitoring are  vested  in State Level  Coordination  Committee  on  Crop  Insurance  (SLCCCI)  and  District  Level  Monitoring Committee (DLMC).

With regard to provision of contingency fund, while there is currently no provision under the scheme, however, to encourage co-option of better technology in the scheme, there is a provision to reimburse 50% expenditure on purchase of smartphones for transmission of Crop Cutting  Experiments  (CCEs)  yield  data  by  Government  of  India.  Further,    50%  of  additional expenses made by the States due to increased number of CCEs due to reduction in unit area of insurance to village/village panchayat are also reimbursed.

The Government both Central and State and insurance companies regularly undertake capacity building in crop insurance and in use of related technology for State officials and bank officials through regular workshops, training and sensitization programmes.

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