Lok Sabha Question No. 369 (UNSTARRED), answered on 2020-02-04
Subject: Progress of PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Gaurav Gogoi, Ravneet Singh

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

## LOK  SABHA

UNSTARRED QUESTION NO. 369 TO BE ANSWERED ON THE 4 TH  FEBRUARY, 2020

## PROGRESS OF PMFBY

369.   SHRI GAURAV GOGOI: SHRI RAVNEET SINGH BITTU:

Will  the  Minister  of  AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी

be pleased to state:

- (a) the progress achieved under the Pradhan Mantri Fasal Bima Yojana (PMFBY);

(b) whether it is true that the Government has noted a drop in the number of farmers and insurance companies enrolled under the scheme during the last three years;

(c) if so, the details thereof and the reasons therefor;

(d) whether  the  Government  has  any  plans  underway  aimed  at  the  revival  of  the scheme and if so, the details thereof;

- (e) whether  any  steps  are  being  taken  by  the  Government  to  revive  the  utility  of  the Fasal  Bima  Yojana  and  also  to  introduce  other  innovative  steps  to  facilitate  having  an effective and proper insurance of the crops; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a) to (c): Based on the experience of past crop insurance schemes and with a view to include more risks  under  crop  insurance,  making  it  more  affordable  to  the  farmers  etc.,  Pradhan  Mantri Fasal  Bima  Yojana  (PMFBY)  has  been  introduced  for  implementation  from  Kharif  2016  season. Due to the improved features of the scheme coverage under the scheme has been increased to 30% of Gross Cropped area in the country from 23% in erstwhile crop insurance schemes in 201516.  The coverage of non-loanee farmers, for whom the coverage is voluntary, has increased from

5% under erstwhile schemes in 2015-16 to 42% during Kharif 2019, which shows the acceptability and progress of the scheme on voluntary basis.

Contd….2/-

- 2 -

Though  the  coverage  during  2 nd year  of  implementation  i.e.  2017-18  of  PMFBY slightly  decreased  due  to  announcement  of  loan  waiver  schemes  by  some  State  and making  Aadhar  compulsory  for  de-duplication  of  coverage,  but  due  to  the  improved features  of  the  scheme  and  efforts  made  by  the  Government  and  other  stakeholders, coverage is showing increasing trends.

18  companies  including  all  the  5  public  sector  companies  have  been  empanelled  for implementation  of  the  scheme  in  country  by  the  Department  of  Agriculture,  Cooperation  and Farmers Welfare.  But all the companies are not participating in bidding process in each State/each season.  During last year i.e. 2019-20 four companies namely, ICICI-Lombard General Insurance Company Ltd., Tata-AIG General Insurance Company Ltd.,  Cholamandal-MS  General Insurance Company Ltd. and Shriram General Insurance Company Ltd. have not participated in fresh bids due to  non-availability  of  reinsurance  arrangement  and  non-approval  by  their  respective  Board  of Directors etc.

(d)  to  (f)  :      Based  on  the  experience  gained  and  views/  comments  of  the  stakeholders,  the Government has recently revised the Operational Guidelines of the scheme with effect from Rabi 2018-19 season.  Inviting of suggestions from various stakeholders and 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.   Accordingly, suggestions for revamping of PMFBY have been invited from various stakeholders.

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