Lok Sabha Question No. 438 (UNSTARRED), answered on 2020-02-04
Subject: Success Rate of PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shashi Tharoor

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

## LOK  SABHA UNSTARRED QUESTION NO.438

TO BE ANSWERED ON THE  4 TH  FEBRUARY, 2020

## SUCCESS RATE OF PMFBY

438. DR. SHASHI THAROOR:

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

- (a) the detailed information on State/UT-wise success rate of the Pradhan Mantri Fasal Bima  Yojana  (PMFBY)  that  was  launched  in  February,  2016  and  promised  to  protect  the country's farmers from crop losses with an insurance scheme at 'the lowest-ever premium rate';
- (b) whether the Minister has undertaken a review of the incorrect, meagre or entirely nonexistent payments, being made to poor farmers for their claims by the agriculture insurance companies;
- (c) if so, the detailed information thereof; and
- (d) if not, the reasons therefor?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a): 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  in  the  country  from  23%  in  erstwhile  crop insurance  schemes  in  2015-16.    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.    State-wise details of farmer applicants, area insured and claims, since inception of the scheme are given in Annexure .

(b) to (d): As per scheme provisions, farmers are indemnified to the extent/percentage of crop losses against the defined Threshold Yield multiplied by sum insured as decided by the State Government.   Claim amount for wide spread calamites are calculated based on the yield data arrived from requisite number of Crop Cutting Experiments (CCEs) conducted by the  concerned  State  Government.    Claims  per  hectare  are  worked  out  as  per  following formula:

<!-- formula-not-decoded -->

Where Threshold Yield for a crop in a notified insurance unit is the average yield of best 5 years out of past seven years multiplied by applicable indemnity level for that crop.

However, losses due to localized risks of hailstorm, landslide, inundation, cloud burst &  natural  fire  and  post-harvest  losses  are  calculated  on  individual  insured  farm  basis. Further, there  is also a provision to pay claims towards prevented sowing/failed germination and adhoc claims in case of mid season adversity.

Therefore, insurance companies have a little role in calculation of claims/quantification of claim amount under the scheme.  However, Government undertakes close monitoring of the scheme and resolve the yield data related issues for calculation of claims between State Government  and  insurance  companies  through  Technical  Advisory  Committee  (TAC)  at Central level.

To provide better risk coverage to farmers and consequent claims, if any, sum insured under the scheme has been equated to Scale of Finance of the crop as determined by the District Level Technical Committee (DLTC).  On an average about 10% increase is made by the DLTC yearly in the Scale of Finance.

Annexure Details of number of farmer applications insured, area insured and approved claims since inception of the Pradhan Mantri Fasal Bima Yojana

## (PMFBY)

| State/UT Name    | Total Number of Farmers Applications Insured (in Lakhs)   | Total Number of Farmers Applications Insured (in Lakhs)   | Total Number of Farmers Applications Insured (in Lakhs)   | Total Area Insured (in Lakh ha)   | Total Area Insured (in Lakh ha)   | Total Area Insured (in Lakh ha)   | Approved Claims (Rs. in Crore)   | Approved Claims (Rs. in Crore)   | Approved Claims (Rs. in Crore)   |
|------------------|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|----------------------------------|----------------------------------|----------------------------------|
| State/UT Name    | 2016-17                                                   | 2017-18                                                   | 2018-19                                                   | 2016-17                           | 2017-18                           | 2018-19                           | 2016-17                          | 2017-18                          | 2018-19*                         |
| A & N Islands    | 0.003                                                     | 0.004                                                     | 0.007                                                     | 0.003                             | 0.002                             | 0.006                             | 0.146                            | -                                | -                                |
| Andhra Pradesh   | 17.756                                                    | 18.255                                                    | 24.467                                                    | 15.596                            | 21.522                            | 22.340                            | 944.429                          | 730.754                          | 1,088.801                        |
| Assam            | 0.603                                                     | 0.558                                                     | 0.738                                                     | 0.410                             | 0.419                             | 0.481                             | 5.355                            | 1.110                            | 0.093                            |
| Bihar            | 27.142                                                    | 23.031                                                    | -                                                         | 24.844                            | 21.258                            | -                                 | 347.892                          | 401.525                          | -                                |
| Chhattisgarh     | 15.491                                                    | 14.743                                                    | 15.704                                                    | 24.143                            | 22.164                            | 22.746                            | 160.070                          | 1,388.010                        | 1,065.316                        |
| Goa              | 0.008                                                     | 0.005                                                     | 0.003                                                     | 0.005                             | 0.004                             | 0.003                             | 0.027                            | 0.005                            | 0.092                            |
| Gujarat          | 19.802                                                    | 17.618                                                    | 21.710                                                    | 30.205                            | 26.578                            | 26.112                            | 1,267.196                        | 1,073.747                        | 2,600.870                        |
| Haryana          | 13.360                                                    | 13.547                                                    | 14.435                                                    | 20.846                            | 19.337                            | 20.547                            | 296.168                          | 899.371                          | 926.161                          |
| Himachal Pradesh | 3.799                                                     | 3.817                                                     | 2.673                                                     | 1.294                             | 1.107                             | 0.894                             | 45.184                           | 64.708                           | 10.190                           |
| Jammu & Kashmir  | -                                                         | 1.587                                                     | 1.541                                                     | -                                 | 1.525                             | 1.101                             | -                                | 9.810                            | 11.360                           |
| Jharkhand        | 8.793                                                     | 11.955                                                    | 12.904                                                    | 3.718                             | 2.902                             | 6.308                             | 31.171                           | 46.935                           | 73.666                           |
| Karnataka        | 29.491                                                    | 20.857                                                    | 19.192                                                    | 26.120                            | 18.085                            | 22.191                            | 2,053.283                        | 859.168                          | 2,755.044                        |
| Kerala           | 0.774                                                     | 0.558                                                     | 0.573                                                     | 0.531                             | 0.478                             | 0.434                             | 44.554                           | 10.936                           | 12.345                           |
| Madhya Pradesh   | 74.608                                                    | 69.546                                                    | 73.383                                                    | 126.087                           | 121.220                           | 129.528                           | 2,039.396                        | 5,827.202                        | 190.712                          |
| Maharashtra      | 120.096                                                   | 102.084                                                   | 147.310                                                   | 72.975                            | 58.958                            | 88.193                            | 2,316.819                        | 3,286.168                        | 5,719.894                        |
| Manipur          | 0.084                                                     | 0.091                                                     | 0.015                                                     | 0.091                             | 0.187                             | 0.008                             | 1.959                            | 0.670                            | 0.001                            |
| Meghalaya        | 0.001                                                     | 0.029                                                     | 0.007                                                     | 0.000                             | 0.034                             | 0.007                             | 0.026                            | 0.017                            | 0.092                            |
| Odisha           | 18.202                                                    | 18.930                                                    | 20.768                                                    | 13.187                            | 13.538                            | 14.619                            | 432.157                          | 1,779.045                        | 1,043.608                        |
| Puducherry       | 0.085                                                     | -                                                         | 0.107                                                     | 0.074                             | -                                 | 0.099                             | 7.572                            | -                                | 0.452                            |
| Rajasthan        | 91.896                                                    | 88.053                                                    | 69.316                                                    | 103.771                           | 98.475                            | 74.312                            | 1,946.855                        | 2,193.411                        | 2,834.478                        |
| Sikkim           | 0.006                                                     | 0.015                                                     | 0.002                                                     | 0.001                             | 0.003                             | 0.001                             | 0.104                            | 0.038                            | 0.002                            |
| Tamil Nadu       | 15.022                                                    | 14.635                                                    | 20.458                                                    | 12.295                            | 11.662                            | 11.098                            | 3,630.248                        | 1,978.869                        | 1,722.183                        |
| Telangana        | 9.731                                                     | 10.899                                                    | 7.811                                                     | 8.222                             | 10.464                            | 7.773                             | 178.756                          | 630.962                          | 143.079                          |
| Tripura          | 0.118                                                     | 0.117                                                     | 0.006                                                     | 0.028                             | 0.030                             | 0.001                             | 0.705                            | 0.999                            | -                                |
| Uttar Pradesh    | 72.893                                                    | 54.210                                                    | 61.270                                                    | 65.115                            | 47.081                            | 51.343                            | 575.042                          | 380.478                          | 449.185                          |
| Uttarakhand      | 2.616                                                     | 2.224                                                     | 1.921                                                     | 1.324                             | 1.164                             | 1.090                             | 27.471                           | 39.435                           | 72.373                           |
| West Bengal      | 41.333                                                    | 40.596                                                    | 51.793                                                    | 19.955                            | 16.795                            | 18.016                            | 421.710                          | 254.321                          | 194.901                          |
| GRAND TOTAL      | 583.714                                                   | 527.965                                                   | 568.116                                                   | 570.841                           | 514.992                           | 519.252                           | 16,774.296                       | 21,857.693                       | 20,914.898                       |

*   Claims in respect of some crops/areas for the season Rabi 2018-19 are not approved.

*********