Lok Sabha Question No. 4037 (UNSTARRED), answered on 2025-03-25
Subject: Budget Allocation
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Vishaldada Prakashbapu Patil

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

## LOK SABHA UNSTARRED QUESTION NO. 4037

TO BE ANSWERED ON 25 TH  MARCH, 2025

## BUDGET ALLOCATION

## 4037. SHRI VISHALDADA PRAKASHBAPU PATIL:

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

- (a) whether the Government is aware that the total budget allocation for the Ministry has been reduced by 2.5% in 2025-26 as compared to the revised estimates of 2024-25;
- (b)  if  so,  the  reasons  for  this  reduction  despite  of  continued  challenges  in  agricultural productivity, irrigation, and farmer incomes;
- (c) whether the 23% cut in allocation for the Pradhan Mantri Fasal Bima Yojana (PMFBY) from  Rs.15,864  crore  to  Rs.12,242  crore  will  impact  farmers'  access  to  risk  coverage, especially in light of increasing climate-related uncertainties, if so, the details thereof; and
- (d)  whether  the  Government  has  assessed  the  impact  of  declining  insurance  claim payments under PMFBY on farmers' financial security and if so, the corrective measures being taken?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI RAMNATH THAKUR)

(a) to (d): Government of lndia is deeply committed to the well-being of farmers across the nation, which is evident through its remarkable increase in budget allocation for the Ministry of Agriculture & Farmers Welfare. The budget allocation for Ministry of Agriculture and Farmers Welfare has been increased from Rs 1,32,469.86 crore in 2024-25 to Rs 1,37,756.55 crore in 2025-26.

As  regard  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  it  is  informed  that  on account of several interventions by Government of India (GoI), the premium rates charged by the Insurance Companies under the scheme have significantly reduced and hence the premium liability of GoI has reduced.  In 2023-24 premium rate was 10.8% as compared to 15.9% in 2020-21.  It may be further noted that  Revised Estimates (2024-25) has been increased to Rs.15,864 crore as compared to  Rs.14,600 crore at Budget Estimates stage (2024-25).  Further,  Union  Cabinet  in  its  meeting  held  on  01.01.2025  has  approved exemption from 10% mandatory allocation in North Eastern Region (NER) heads due to which  funds  which  were  surrendered  in  earlier  years  have  been  made  available  for utilisation  for non-NER States which will significantly reduce past liabilities.  Keeping in mind the  above, BE 2025-26 has been kept at Rs.12,242 crore.  Further,   the Union Cabinet in the meeting held on 01.01.2025  has also approved an increased outlay of Rs.69,515.71  crore  under  the  scheme  for  the  period  2021-22  to  2025-26.    Therefore, sufficient funds are available for additional allocation.

Majority of  the  claims  are  settled  within  the  stipulated  timelines  under  the Operational Guidelines of the scheme by the insurance companies. However, during the implementation  of  PMFBY,  some  complaints  against  insurance  companies  about  nonpayment  and/or  delayed  payment  of  claims;  under  payment  of  claims  on  account  of incorrect/delayed submission of insurance proposals by banks; discrepancy in yield data & consequent disputes between State Government and insurance companies, delay in providing State Government share of funds, non-deployment of sufficient personnel by insurance companies etc., were received in the past which were suitably addressed as per the provisions of the scheme.

Since the scheme is implemented by the State Government, therefore, in order to resolve the grievances/complaints including those related to claims of insured farmers, provision  of  Stratified  Grievance  Redressal  Mechanism  viz.  District  Level  Grievance Redressal Committee (DGRC), State Level Grievance Redressal Committee (SGRC) has been made in the Revised Operational Guidelines of the Scheme. These committees have been given the detailed mandate as outlined in the Operational Guidelines for hearing the complaints/ grievances and to dispose them as per the stipulated procedure.

To further improve the grievance redressal mechanism, Krishi Rakshak Portal and Helpline (KRPH) has been developed. A single Pan-India toll free number 14447 has been deployed and linked to the insurance companies database, where farmers can raise their grievances/issues. Timelines to resolve these grievances/issues has also been fixed.

Department  is  regularly  monitoring  the  functioning  of  insurance  companies  by various methods, including timely settlement of claims through weekly video conferences of all stakeholders, one to one meeting as well as National Review Conferences.

Based on the experience gained, views of various stakeholders and with a view to ensure better transparency, accountability, timely payment of claims to the farmers and to make  the  scheme  more  farmer  friendly,  Government  has  periodically  revised  the Operational Guidelines of the PMFBY comprehensively to ensure that the eligible benefits under the scheme reach the farmers timely and transparently.

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