Lok Sabha Question No. 3644 (UNSTARRED), answered on 2021-08-10
Subject: Opting Out of PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Uttam Kumar Nalamada Reddy

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

## LOK SABHA UNSTARRED QUESTION NO. 3644

TO BE ANSWERED ON THE 10 TH  AUGUST, 2021

## OPTING OUT OF PMFBY

## 3644. SHRI UTTAM KUMAR REDDY NALAMADA:

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

- (a)  the  details  of  the  number  of  States  that  have  opted  out  of  implementing  Pradhan Mantri  Fasal  Bima  Yojana  (PMFBY)  along  with  the  reasons  stated  for  doing  so  and whether these States have their own crop insurance schemes;
- (b) the number of farmers without any access to crop insurance schemes in the country in 2020-21 and 2021-22; and
- (c) the steps taken by the Government to improve access to crop insurance?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a)  to  (c)  :    The  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  introduced  from  Kharif 2016 season in the country is voluntary for States/UTs.  States/UTs can opt in favour of or  opt  not  in  favour  of  the  scheme  keeping  in  view  their  risk  perception  and  financial considerations.  States of Andhra Pradesh, Bihar, Gujarat, Jharkhand, Telangana and West Bengal have discontinued the scheme in their respective States after implementing  it  for  some  seasons/years.    However,  as  per  information  available, following States are implementing their own assistance/crop insurance schemes :

| State          | Name of Scheme                     |
|----------------|------------------------------------|
| Andhra Pradesh | Dr. YSR Free Crop Insurance Scheme |
| Bihar          | Bihar Rajya Fasal Sahayata Yojana  |
| Gujarat        | Mukhyamantri Sahay Yojana          |
| Jharkhand*     | Jharkhand Fasal Rahat Yojana       |
| West Bengal    | Bangla Shashya Bima                |

These schemes are providing limited benefits to the farmers as compared to the PMFBY. All  farmers  including  sharecropper  and  tenant  armers  can  access  the  scheme and enroll themselves for the crops/areas notified by the concerned  State/UT Government.    However,  all  the  crops/areas  are  not  notified  by  the  concerned  State Government under the scheme, the farmers growing non-notified crops may not have access to the scheme.  Further, the scheme is also voluntary for all farmers and they are free to opt or not to opt in favour of the scheme. The  farmers  can  get  enrolled/access  through  various  sources  PMFBY.    In addition to the conventional channels of enrollment of farmers through Rural financial institutions/banks  and  insurance  companies/their  intermediaries,  Common  Service Centers  (CSCs)  are  also  available  at  village  level  for  facilitating  free  enrollment. Farmers can also do direct online enrollment on National Crop Insurance Portal (NCIP) or through Crop Insurance App. To  motivate  and  to  increase  the  coverage/enrollment  of  farmers  under  the scheme, Government has taken several steps to create substantial awareness amongst the farmers on the benefits/key features of PMFBY.   As envisaged in the operational guidelines  of  the  PMFBY,  the  Insurance  companies  have  been  asked  to  utilize  0.5% and fund of the gross premium collected by them on Information, Education Communication (IEC) activities to build overall insurance literacy of farmers.

As a result of  these  measures  since inception  of the scheme  in  2016-17, over 2921  lakh  farmer  applications  have  been  enrolled  as  on  28.07.2021.      Against  the premium of Rs. 21574 crore paid by farmers, the claims amounting to Rs. 98108 crore have been paid to 843.4 lakh farmer applications.

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