Lok Sabha Question No. 232 (STARRED), answered on 2023-12-19
Subject: Rejoining of Andhra Pradesh in PMFBY
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Reddeppa Nallakonda Gari, Kuruva Gorantla Madhav

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

## LOK SABHA STARRED QUESTION NO. 232

TO BE ANSWERED ON THE 19 TH  DECEMBER, 2023

## REJOINING OF ANDHRA PRADESH IN PMFBY

- *232.  SHRI N. REDDEPPA:

SHRI KURUVA GORANTLA MADHAV:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

- (a) whether the State of Andhra Pradesh has rejoined the Pradhan Mantri Fasal Bima Yojana (PMFBY) from the year 2022-23 and if so, the details thereof;
- (b) whether  the  Union  Government  has  paid  part  claims  of  Rs.  547.33  crore  to  the Government of Andhra Pradesh for Kharif season 2022 against the gross premium of Rs. 1880 crore;
- (c) if so, whether the full amount has been cleared/paid; and
- (d) if not, the reasons therefor?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी (SHRI ARJUN MUNDA)

(a) to (d) : A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO PART (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 232 REGARDING REJOINING OF ANDHRA PRADESH IN  PMFBY FOR REPLY ON 19 TH  DECEMBER, 2023.

(a): The Pradhan Mantri Fasal Bima Yojana (PMFBY), the largest Crop Insurance Scheme in the world (by enrollment), introduced in the country from Kharif 2016 season is voluntary for States and farmers.   27 States/ Union Territories (UTs) have implemented the scheme in one or more seasons since inception.  Against farmers share of premium of Rs.29,237 crore, claims of Rs. 1,51,926 crore have been paid benefitting the farmers.   While Andhra Pradesh had withdrawn from the scheme from Rabi 2019-20 season, with the efforts made by the Department of Agriculture and Farmers Welfare, State has rejoined the scheme from Kharif 2022 season and made the scheme universal wherein all the farmers registered on State Government portal are covered with no premium by farmers under the scheme.   Farmers' share of premium is also paid by the State Government.

(b) to  (d) :      As  per  scheme  provisions,  claims are not  worked out or paid by the Central Government.   Claims liability under the scheme is worked out by the State Government concerned and the insurance companies as the loss/yield data for calculation of claims is provided by the concerned State Government or committee of the State Government officials and insurance company representatives.  It is further clarified that premium is paid to the insurance for coverage of risks and farmers under the scheme whereas claims are dependent on happening of  natural calamities.

During  Kharif  2022  season,  total  premium  of  Rs.1885.06  crore  including  Central Government share of Rs. 669.93 crore  was collected in Andhra Pradesh under the scheme. Out of the total claims of Rs.568.74 crore reported as per provisions of the scheme for the same season, claims of Rs.556.29 crore have already been paid to the farmers.  Remaining claims are pending due to various issues like unverified Aadhar numbers of farmers, National Electronic Fund Transfer (NEFT) related issues, crop code mismatch etc.

Government has developed and offered three risk sharing models (Profit and Loss Sharing, Cup and Cap (60-130), Cup and Cap (80-110) with effect from Kharif 2023 season. Government of Andhra Pradesh has opted for Cup and Cap (80-110) model, wherein if less than 80% claim is due then a portion of the premium paid by the State is deposited back to the state treasury itself.

Further,  with  a  vision  to  strengthen  the  scheme,  Government  has  made  various technological  and  policy  interventions  like  National  Crop  Insurance  Portal  (NCIP),  Yield Estimation System based on Technology (YES-TECH), Weather Information Network and Data  System  (WINDS),  Collection  of  Real  time  Observations  and  Photographs  of  Crops (CROPIC), integration of State Land Records with NCIP, Digiclaim module on NCIP to work out  and  settle  the  claims  directly  to  farmers  account  using  Public  Finance  Management System (PFMS); increased IEC activities etc.  Due to these interventions, premium rates have fallen across the country and for Andhra Pradesh total premium decreased from Rs.1885 crore    (Kharif  2022)  to  Rs.  1274  crore  (Kharif  2023  season),  whereas  area  insured  has increased from 20.36 lakh hectare to 28.34 lakh hectare in these seasons, thus covering 8.02 lakh hectare more area with Rs. 611 crore lesser premium in the interest of farmers.

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