Lok Sabha Question No. 536 (UNSTARRED), answered on 2018-02-06
Subject: Insurance Schemes for Organic Farms
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: JUGAL KISHORE SHARMA

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

## LOK  SABHA

## UNSTARRED QUESTION NO. 536

TO BE ANSWERED ON THE 6 TH  FEBRUARY, 2018

## INSURANCE SCHEMES FOR ORGANIC FARMS

536. SHRI JUGAL KISHORE:

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

- (a) whether  the  Government  has  any  plan/proposal  to  introduce  any  special  insurance schemes for organic farms which will reduce the risk of farmers in case of crop failure, if so, the details thereof; and
- (b) whether the Government has any plan/proposal to provide loan at cheaper interest with least formalities for promoting organic farming in the country, if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI GAJENDRA SINGH SHEKHAWAT)

- (a): Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY),  introduced  from  Kharif  2016  season provides comprehensive risk insurance to the crops in areas notified  by the concerned State Governments on area approach basis for wide spread calamities viz. drought, flood, pest and diseases,  cyclone  etc.  and  on  individual  basis  for  localized  risks  of  hailstorm,  landslide  and inundation and post harvest losses due to unseasonal rains.  The scheme envisages coverage of  all  food,  oilseeds  and  annual  commercial/horticultural  crops  subject  to  availability  of  yield data of past years and capacity of the State Government to conduct requisite number of Crop Cutting Experiments in the notified insurance unit area for loss assessment. Crops are generally notified by the States as general terms without any specification i.e. organic or other category of crops.    However,  crops  can  be  notified  as  irrigated  and  unirrigated  by  the  concerned  State Government.    There  is  no  proposal  under  consideration,  at  present  for  specific  coverage  of organic farms under PMFBY.
- (b): The Government is already providing interest subvention to make short-term crop loans including loans to organic crops upto Rs. 3 lakh for a period of one year available to farmers at the interest rate of 7% per annum and in case of timely repayment, the same gets reduced to 4%.    Government  has  also  extended  this  for  private  sector  scheduled  commercial  banks  in respect of loans given within the service area of the branch concerned.

Further, in order to discourage distress sale by farmers and to encourage them to store their  produce  in  warehouses  against  warehouse  receipts,  the  benefits  of  interest  subvention scheme has also been extended to small and marginal farmers having Kisan Credit Card for a further period upto six months post harvest on the same rate as available to crop loan against negotiable warehouse  receipt for keeping their produce in warehouses  accredited by Warehousing Development Regulatory Authority (WDRA).

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