Lok Sabha Question No. 1266 (UNSTARRED), answered on 2021-02-09
Subject: States Opting out of PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Gaddam Ranjith Reddy

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO. 1266

TO BE ANSWERED ON THE 9 TH  FEBRUARY, 2021

## STATES OPTING OUT OF PMFBY

1266.  DR. G. RANJITH REDDY:

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

be pleased to state:

- (a) whether  it  is  true  that  after  making  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY) voluntary, many States are opting out of the Scheme;
- (b) if  so,  the  details  of  the  States  that  have  opted  out  of  the  scheme  so  far  and  the reasons given by each State for the same;
- (c) the methodology used by the Ministry to justify the increase of 3 per cent to 4 per cent premium on the grounds that it would make the scheme attractive; and
- (d) whether this increase would not further burden the States which are already reeling under severe financial constraints and if so, the details thereof?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR

- (a) to (d): The Pradhan Mantri Fasal Bima Yojana (PMFBY) has been made voluntary for farmers from Kharif 2020 season whereas the scheme is  already voluntary for States since  inception  and    they  are  free  to  take  decision  regarding  implementing  the  scheme. Government  of West  Bengal  had  started  its  own  scheme  namely,  Bangla  Sashya  Bima (BSB) from 2019-20.   Similarly, Bihar has also started its own assistance scheme for their farmers  and  opted  out  of  the  PMFBY.  The  States  of  Andhra  Pradesh,  Telangana, Jharkhand, Gujarat and Manipur have not implemented the scheme in 2020-21.  Though, Jammu & Kashmir was desirous of implementing the scheme, but it could not implement it due to late approval/bidding related issues and is in the process of implementation of the scheme in Kharif 2021 season.  Therefore, it is only the State/UT Government which can take  a  call  on  the  implementation  of  the  scheme  as  per  Operational  Guidelines  of  the scheme.

Actuarial/bidded premium rates are paid to the insurance companies under PMFBY, but farmers have to pay a low flat premium rate of maximum of 1.5% for Rabi, 2% for Kharif food and Oilseed crops and 5%  for commercial/horticultural crop.  Though  some changes/modifications in provisions of PMFBY have been made w.e.f. Kharif 2020 interalia including change in subsidy sharing pattern from 50 : 50 to 90 : 10 between Central and State  Government  in North  Eastern  States,  freedom  to  States  to  choose  the  risk  etc.  to lower the burden of the States and rationalization of actuarial/bidded premium but this has no effect on farmers as they have to pay only flat rate of premium and remaining admissible premium is shared by the Central and respective State Government.

Further,  Department of  Agriculture,  Cooperation  and  Farmers Welfare  has  formed Technical Support Unit (TSU) to provide technical assistance to Crop insurance schemes. TSU  has  provided  supporting  analysis  to  several  States  helping  them  understand  the quantified risk assessment of their respective States.

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