Lok Sabha Question No. 1143 (UNSTARRED), answered on 2018-07-24
Subject: Revision of Funding Pattern under PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Pratyusha Rajeshwari Singh

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

## LOK  SABHA UNSTARRED QUESTION NO.1143

TO BE ANSWERED ON THE  24 TH  JULY, 2018

## REVISION OF FUNDING PATTERN UNDER PMFBY

1143.  SHRIMATI PRATYUSHA RAJESHWARI SINGH:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE      ‡ãðŠãäÓã एवं  कसान कयाण ½ãâ¨ããè be pleased to state:

- (a) whether the Government is considering to revise the funding pattern of Pradhan Mantri  Fasal  Bima  Yojana  (PMFBY)  to  60:40  between  the  centre  and  the  States  like other centrally sponsored scheme, if so, the details thereof;
- (b) whether it is a fact that necessary steps need to be taken by the Government for provision  of  contingent  funds  under  the  PMFBY  for  smooth  implementation  of  the programme, if so, the details thereof;
- (c) whether the Government is considering to allow greater operational flexibility to States; and
- (d) if  so,  the  details  thereof  and  the  steps  taken  by  the  Government  for  capacity building of State official and Bank officials on use of Crop Insurance Portal?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं  कसान  कयाण ½ãâ¨ããÊã¾ã  ½ãñâ  Àã·¾ã  ½ãâ¨ããè (  SHRI PARSHOTTAM RUPALA)

(a) to (d): No  Madam,  there  is  no  such  proposal  under  consideration  for  revising  the funding pattern in Pradhan Mantri Fasal Bima Yojana (PMFBY) to 60 : 40 between Centre and States.  Under PMFBY the States are required to equally share the premium subsidy with the Central Government keeping in view the significant stake of the States in securing the interest of their farmers.

The  scheme  is  a  complex  scheme  and  other  than  demand  for  share  of  premium subsidy,  Regarding  capacity  building  on  use  of  crop  insurance  portal  this  Department continuously imparts training both at State headquarters and district level to all the funds could be required by the Government, both Centre and State for implementation of other aspects of the  scheme  such  as  for  better  technology  adoption.    Presently  there  is  no  provision  for contingency fund under the scheme but any  such eventualities may be taken care of through revised budget estimates by the Government.

Keeping in view the stake of the States in the successful implementation of the scheme,  the  States  that  opt  for  the  scheme  have  been  given  maximum  operational flexibility, viz.  in deciding the crops/areas to be covered and the indemnity levels, cutoff dates within the broad seasonality discipline etc.   The States provide past/ present yield  data  for  determination  of  actuarial  premium  rates  and  claim  amounts.   State Governments also prepare clusters of their districts through appropriate risk classification  for  minimization/  rationalization  of  actuarial  premium  and  selection  of implementing  insurance  companies,  whether  public  or  private,  through  transparent bidding process based on the lowest premium rates (L-1) quoted by them. They also conduct  Crop  Cutting  Experiments  (CCEs)  and  furnish  CCE  data  for  calculation  of claims  etc.     Overall  responsibility  for  scheme  implementation  and  monitoring  are vested in State Level Coordination Committee on Crop Insurance (SLCCCI) and District Level Monitoring Committee (DLMC).

Regarding  capacity  building  on  use  of  crop  insurance  portal  this  Department continuously  imparts  training  both  at  State  headquarters  and  district  level  to  all  the stakeholders including officials of State Governments, financial institutions and insurance companies.

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