Lok Sabha Question No. 43 (STARRED), answered on 2019-06-25
Subject: Crop Insurance Schemes
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Mohanbhai Kalyanji Kundariya

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE, COOPERATION & FARMERS WELFARE

## LOK  SABHA STARRED QUESTION NO. 43

TO BE ANSWERED ON THE   25 TH  JUNE, 2019

## CROP INSURANCE SCHEMES

- *43.     SHRI MOHANBHAI KALYANJI KUNDARIYA:

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

- (a) whether  the  Government  has  received  any  request  to  make  the  crop  insurance optional rather than mandatory for farmers; (b) if so, the details thereof and if not, the reasons therefor; (c) the details of the claim settlement ratio under the present crop insurance scheme in the country, State-wise; (d) whether  it  is  a  fact  that  making  crop  insurance  mandatory  for  crop  loanees  has severely  affected  the  farmers  economically  due  to  less  claim  settlements  and  if  so,  the details thereof; and (e) the corrective steps taken by the Government in this regard?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA  SINGH TOMAR)

- (a) to (e): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA STARRED QUESTION NO.  43  DUE FOR REPLY ON 25 TH  JUNE, 2019.

(a) to (e): The  objective  of  launching  the  new  scheme,  an  yield  based  scheme, namely,  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  and  an  weather  index  based 'Restructured Weather Based Crop Insurance Scheme (RWBCIS)' from Kharif 2016, is to provide a simple and affordable crop insurance product to ensure comprehensive risk cover for crops of farmers against all non-preventable natural risks from pre-sowing to post-harvest, to provide adequate claim amount and timely settlement of claims.

Crop insurance is a major risk mitigation tool for the benefit of farmers. Insurance is all about spreading the risk over the period and over the area.  As per provisions of the PMFBY/RWBCIS, premium from farmers alongwith Central and State Government share in premium subsidy is paid to the concerned insurance company for acceptance of risk and payment of claims as per provision of scheme.    Insurers save premium in good seasons/years and pay high claims, if any in bad years from the savings made in the good years.

Therefore,  the  scheme  is  made  compulsory  for  the  loanee  farmers  growing notified  crops  in  notified  areas  and  the  scheme  is  voluntary  for  non-loanee  farmers. Requests/representations  have  been  received  from  various  quarters  including  farmer organizations, States etc. to make the scheme voluntary/optional for all farmers.  The revisions/improvements  in  the  crop  insurance  schemes  is  a  continuous  process  and decisions on suggestions/representations are taken from time to time after consultation with various stakeholders.

-2-

Inspite  of  overall  good  monsoon  during  first  two  years  of  implementation  of PMFBY,  the  claim  ratio  during  2016-17  and  2017-18  was  about  74%  and  83% respectively.    But  the farmers in most affected areas/States received higher claims and the  claim  ratio  was  high  in  these  States  viz.  Kerala  209%  and  Karnataka-134%, during Kharif 2016,  Tamil Nadu - 286% and Andhra Pradesh 172% during Rabi 201617.  Similarly during Kharif 2017, the higher claim ratio was in the States of Chhattisgarh - 451%, Haryana - 269%, Madhya Pradesh - 161% and Odisha - 216%.  During Rabi 2017-18  high  claim  ratio  States  were  Odisha  (226%),  Tamil  Nadu  (122%)  and Chhattisgarh (105%).  Though complete data for Kharif 2018 season is not available, high  Claims ratio has been reported  in States of Himachal Pradesh (215%), Haryana (120%), Uttarakhand (115%) and Chhattisgarh (111%)   Hence, it is not correct to say that  loanee  farmers,  for  whom  the  Scheme  is  mandatory,  are    severely  affected economically due to less settlement of claims.  State-wise details of claim ratio during 2016-17, 2017-18 and 2018-19 (Provisional for Kharif 2018 season only as complete data is not available for Rabi 2018-19) are Annexed .

| Annexure   | Annexure         | Annexure         | Annexure        | Annexure    | Annexure        | Annexure        | Annexure             | Annexure   | Annexure         |
|------------|------------------|------------------|-----------------|-------------|-----------------|-----------------|----------------------|------------|------------------|
| Sl. No.    | State/UT Name    | 2016-17          | 2016-17         | 2016-17     | 2017-18         | 2017-18         | 2017-18              | 2018-19    | 2018-19          |
|            |                  | Kharif           | Rabi            | Total       | Kharif          | Rabi            | Total Kharif #       | Rabi       | Total            |
| 1          | A & N Islands    | Not Implemented  | 899%            | 899%        | Not Implemented | 0%              | 0% 0%                | -          | 0%               |
| 2          | Andhra Pradesh   | 95%              | 172%            | 110%        | 44%             | 70%             | 48% 96%              | -          | 96%              |
| 3          | Assam            | 73%              | 8%              | 60%         | 5%              | 34%             | 9% 0%                | -          | 0%               |
| 4          | Bihar            | 26%              | 19%             | 25%         | 56%             | 14%             | 42% Not Implemented  | -          | Not              |
| 5          | Chhattisgarh     | 49%              | 50%             | 49%         | 451%            | 105%            | 379% 111%            | -          | Implemented 111% |
| 6          | Goa              | 36%              | 0%              | 36%         | 10%             | 0%              | 10%                  | -          | 0%               |
| 7          | Gujarat          | 56%              | 59%             | 56%         | 33%             | 14%             | 0% 32% 72%           | -          | 72%              |
| 8          | Haryana          | 92%              | 57%             | 81%         | 269%            | 60%             | 198% 120%            | -          | 120%             |
| 9          | Himachal Pradesh | 95%              | 60%             | 63%         | 89%             | 83%             | 83% 215%             | -          | 215%             |
| 10         | Jammu & Kashmir  | Not Implemented  | Not Implemented | Not Impleme | 28%             | 19%             | 24% 4%               | -          | 4%               |
| 11         | Jharkhand        | 11%              | 26%             | nted 11%    | 22%             | 7%              | 21% #                | -          | #                |
| 12         | Karnataka        | 134%             | 96%             | 117%        | 45%             | 75%             | 46% #                | -          | #                |
| 13         | Kerala           | 209%             | 108%            | 134%        | 64%             | 23%             | 42% 87%              | -          | 87%              |
| 14         | Madhya Pradesh   | 72%              | 13%             | 54%         | 161%            | 21%             | 119% #               | -          | #                |
| 15         | Maharashtra      | 52%              | 38%             | 50%         | 76%             | 61%             | 74% 93%              | -          | 93%              |
| 16         | Manipur          | 55%              | Not Implemented | 55%         | Not Implemented | 35%             | 35% 0%               | -          | 0%               |
| 17         | Meghalaya        | 86%              | 0%              | 65%         | 1%              | Not Implemented | 1% 10%               | -          | 10%              |
| 18         | Odisha           | 81%              | 44%             | 80%         | 216%            | 226%            | 217% 67%             | -          | 67%              |
| 19         | Puducherry       | Not Implemented  | 263%            | 263%        | Not Implemented | Not Implemented | Not Implemented 0%   | -          | 0%               |
| 20         | Rajasthan        | 83%              | 48%             | 75%         | 91%             | 52%             | 80% 60%              | -          | 60%              |
| 21         | Sikkim           | Not Impleme nted | 1058%           | 1058 %      | 0%              | 0%              | 0% 22%               | -          | 22%              |
| 22         | Tamil Nadu       | 107%             | 286%            | 284%        | 91%             | 122%            | 121% 64%             | -          | 64%              |
| 23         | Telangana        | 71%              | 24%             | 61%         | 99%             | 46%             | 94% 72%              | -          | 72%              |
| 24         | Tripura          | 165%             | 183%            | 180%        | 163%            | 120%            | 129% Not Implemented | -          | Not Impleme nted |
| 25         | Uttar Pradesh    | 66%              | 24%             | 49%         | 36%             | 19%             | 27% 54%              | -          | 54%              |
| 26         | Uttarakhand      | 66%              | 67%             | 66% 58%     | 78%             | 38%             | 58% 115% #           | - -        | 115% #           |
| 27         | West Bengal      | 40%              | 68%             |             | 96%             | 10%             | 40%                  |            |                  |
| Total      | Grand Total      |                  |                 | 74%         | 93%             |                 | #                    |            | #                |
|            |                  | 66%              | 96%             |             |                 | 54%             | 83%                  | -          |                  |

NOTE :  Claim Ratios are calculated as Estimated  Claims divided by Gross Premium (which includes farmer share,  State Subsidy and GOI Subsidy).

# Complete yield data for calculation of claims for Kharif 2018 is not fully reported/received from States especially Jharkhand, Karnataka, Madhya Pradesh and West Bengal.

** Business Statistics for Rabi 2018-19 is not available.