Lok Sabha Question No. 326 (STARRED), answered on 2020-03-17
Subject: Amendment of Pradhan Mantri Fasal Bima Yojana
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Jaskaur Meena, Nihal Chand Chauhan

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

## LOK  SABHA

## STARRED QUESTION NO. 326

TO BE ANSWERED ON THE   17 TH  MARCH, 2020

## AMENDMENT OF PRADHAN MANTRI FASAL BIMA YOJANA

- *326.     SHRIMATI JASKAUR MEENA: SHRI NIHAL CHAND:

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

- (a) whether  the  Government  proposes  to  amend  the  Pradhan  Mantri  Fasal  Bima Yojana;
- (b) if so, the details thereof along with the reasons therefor; and
- (c) the time by which the said amendments are likely to be carried out, give details?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA  SINGH TOMAR)

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

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  LOK  SABHA STARRED QUESTION NO.   326  DUE FOR REPLY ON 17 TH     MARCH, 2020.

(a) to (c):     The Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) are regularly reviewed especially the challenges faced by the stakeholders in its implementation since their inception in Kharif 2016 season. Accordingly, this Department had made detailed consultations with all stakeholders viz. State Governments, farmer organizations, insurance companies, reinsurance companies, financial institutions,  concerned  organizations,  and  Central  Government  Departments  at  various forums to identify the challenges and finalise the possible solutions/remedial measures etc. Based on their feedback and suggestions changes have recently been incorporated in the provisions/ parameters of ongoing PMFBY/RWBCIS for its implementation from Kharif 2020. Details of Change made in the  provisions/parameters of the schemes are given below :

-  To address the demand of farmers, the scheme has been made voluntary for all farmers. There is no change in farmers' share of premium.
-  The premium subsidy sharing pattern between Centre and North Eastern States has  been  changed  from  50  :  50  to  90:10.    This  has  been  done  to  allow  more States to notify the scheme and existing States to notify more crops and areas to facilitate  greater  coverage  of farmers under the scheme.  For remaining States, subsidy sharing pattern will continue as 50 : 50.
-  Insurance  companies  will  now  be  selected  by  the  States  for  3  years  in  a  go instead of one year thereby increasing their commitment and accountability to the farmers.
-  Option has been given to the States to choose the notional value of average yield or the Scale of Finance as sum insured in the interest of the farming community.

-  The issue of high premium rate for few crops/areas due to adverse selection has been suitably addressed. The requisite central share of premium subsidy will be provided  for  areas/crops  having  gross  premium  rate  upto  25%  for  irrigated  and upto 30% for un-irrigated areas/crops. Besides, alternate risk mitigation measures will be explored for these areas/crops.
-  In view of the demand of many states, option has been given to states to choose additional risk covers besides shortfall in yield-based cover depending upon the local weather challenges and requirements of the farmers.
-  The states  delaying  the  release  of  subsidy  beyond  stipulated  timelines  can  not participate in upcoming seasons.
-  Two-step process of crop yield estimation using weather and satellite indicators etc. is adopted, which will help in early assessment of loss.
-  Use of smart sampling technique through satellite data for crop cutting experiments by some states has shown increased efficiency in implementation. This will now be universalized.
-  The delay by some States in submission of crop yield data will now be suitably addressed using technological solutions.
-  Provision  has  been  made  for  earmarked  administrative  expenses  @  3%  for strengthening the infrastructure and technology for better delivery of the Scheme.

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