Lok Sabha Question No. 407 (UNSTARRED), answered on 2015-12-01
Subject: New Crop Insurance Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: BOORA NARSAIAH GOUD, (ADV.) JOICE GEORGE, GANESH SINGH, BHAIRON PRASAD MISHRA, BHAGWANTH KHUBA

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

## LOK  SABHA UNSTARRED QUESTION NO.407

TO BE ANSWERED ON THE  1 ST  DECEMBER, 2015

## NEW CROP INSURANCE SCHEME

407.   DR. BOORA NARSAIAH GOUD:

ADV. JOICE GEORGE:

SHRI GANESH SINGH:

SHRI BHAIRON PRASAD MISHRA:

SHRI BHAGWANTH KHUBA:

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

- (a) whether the existing crop insurance scheme does not completely safeguard the interests of the farmers, if so, the details thereof along with the deficiencies identified therein;
- (b) whether the Government has received any reports from the Farmers unions and State Governments in this regard, if so, the details thereof;
- (c) the number of crop insurance units and the details of the crops covered under these  schemes  including  horticulture  and  its  produce  and  the  number  of  farmers benefited under these schemes during the last three years and the current year, Statewise, scheme-wise;
- (d) whether  the  Government  is  contemplating  to  launch  any  new  crop  insurance scheme so that the farmers can be benefited;
- (e) if so, the details thereof including its advantages and the time by which it is likely to be implemented;
- (f) whether the Government is considering to revise the pattern of crop insurance from block to individual insurance, if so, the details thereof; and
- (g) the details of the amount dispersed to the farmers during the last three years and current year, State-wise, year wise?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

½ãâ¨ããÊã¾ã ½ãñâ Àã·¾ã ½ãâ¨ããè ( SHRI MOHANBHAI KUNDARIA )

‡ãðŠãäÓã एवं किसान िल्याण

- (a): Recently,  various  improvements  /  changes have  been made  in  the  yield  index based Modified National Agricultural Insurance Scheme (MNAIS), weather index based Weather  Based  Crop  Insurance  Scheme  (WBCIS)  &  crop  specific  Coconut  Palm Insurance  Scheme  (CPIS)  and  an  umbrella  central  sector  scheme  in  the  name  of 'National Crop Insurance Programme' (NCIP) has been introduced by merging MNAIS, WBCIS  &  CPIS  throughout  the  country  from  Rabi  2013-14.  The  foresaid  schemes provide comprehensive risk coverage against natural calamities and adverse weather conditions.  However,  following  issues  have  been  identified  in  the  Modified  National Agricultural Insurance Scheme (MNAIS) and Weather Based Crop Insurance Scheme (WBCIS) components of NCIP  :-

- (i) Increase in the farmers' share of premium.
- (ii) Reduction of Sum Insured due to capping on actuarial premium under MNAIS and WBCIS
- (iii) Increase in number of Crop Cutting Experiments.
- (iv) High Variability in premium rate between neighboring districts under MNAIS.
- (v) Higher premium in districts having high risk.
- (vi) Difficulties  faced  by  the  States  in  allocation  of  districts/areas  to  insurance companies.

(b): Inputs/suggestions  for  implementation  and  improvement  in  the  existing  crop insurance  are  regularly  being  received  from  various  stakeholders  including  Farmers Unions  and  State  Government  regarding  reduction  of  farmers  share  of  premium, assessment of yield losses at individual farm level, early settlement of claims etc.

(c): The crop insurance schemes  are being operated on the basis of 'Area Approach' i.e.  defined  areas.    The  defined  unit  area  may  be  Mandal,  Hobli,  Circle,  Firka,  Block, Taluka,  Gram  Panchayat,  village  etc.  under  National  Agricultural  Insurance  Scheme (NAIS)  which  is  decided  by  the  implementing  State  Government/Union  Territory  for each notified crop, subject to the condition that State/UT has the capacity to undertake requisite number of Crop Cutting Experiments (CCEs) under single series,  for making assessment  of  yield  and  capacity  for  making  available  adequate  past  yield  data. However, defined unit area of insurance has been reduced to village panchayat/village level for major crops under Modified NAIS.  Insurance unit area under WBCIS is notified by the State Government according to availability of weather  stations.

NAIS &  MNAIS   covers  all  food  crops  ( cereals, millets &  pulses),  oilseeds and    annual  commercial/horticultural  crops,  in  respect  of  which  past  yield  data  is available  for  adequate  number of  years.  Only  perennial  horticulture  crops  are not  yet covered under NAIS. Under pilot WBCIS, perennial commercial/horticultural crops may also be covered besides the crops covered under NAIS, MNAIS. CPIS covers coconut palm. The numbers of farmers insured & benefitted under NAIS, MNAIS & WBCIS from Kharif 2012 to Kharif 2015 are annexed.

(d) to (f): Improvement in crop insurance schemes to make these more scientific in order to better serve the interests of the farmers,  is a continuous process and steps are taken in this regard by the Government from time to time.  Government has reviewed the  existing  National  Crop  Insurance  Programme  (NCIP)  in  consultation  with  various stakeholders  including  State  Governments  specially  with  regard  to  farmers  share  of premium,  early  settlement  of  claims  and  rationalization  of  insurance  unit  and  crop cutting experiments.

Due  to  non-availability  of  infrastructure  and  other  operational  difficulties  in  its implementation at individual level, the schemes is being implemented on area approach basis  for  wide  spread  calamities  but  assessment  of  losses  at  individual  farm  level  is done for localized calamities like Hailstorm, landslide, etc. under MNAIS.

(g): The State-wise  details of the claims disbursed to the farmers during last three years under NAIS, MNAIS & WBCIS are annexed as stated above  in the reply of part (c) of the question.

## NATIONAL AGRICULTURE INSURANCE SCHEME - MNAIS

## AIC BUSINESS STATS FROM KHARIF 2012 TO KHARIF 2015

| State            | Kharif 2012            | Kharif 2012          | Kharif 2012               | Rabi 2012-13           | Rabi 2012-13         | Rabi 2012-13              | Kharif 2013            | Kharif 2013          | Kharif 2013               | Rabi 2013-14           | Rabi 2013-14         | Rabi 2013-14              |              |
|------------------|------------------------|----------------------|---------------------------|------------------------|----------------------|---------------------------|------------------------|----------------------|---------------------------|------------------------|----------------------|---------------------------|--------------|
| State            | No. of Farmers Insured | Claims (in Rs. Lakh) | No. of Farmers benefitted | No. of Farmers Insured | Claims (in Rs. Lakh) | No. of Farmers benefitted | No. of Farmers Insured | Claims (in Rs. Lakh) | No. of Farmers benefitted | No. of Farmers Insured | Claims (in Rs. Lakh) | No. of Farmers benefitted | No. Far Insu |
| Andhra Pradesh   | 1204398                | 4866.59              | 70842                     | 360048                 | 15962.98             | 72877                     | 932255                 | 7939.56              | 89951                     | 296044                 | 926.76               | 25978                     |              |
| Assam            | 32053                  | 94.93                | 1654                      | 24012                  | 100.28               | 2097                      | 30678                  | 36.15                | 561                       | 22741                  | 98.99                | 1908                      |              |
| Bihar            | 0                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         |              |
| Chhattisgarh     | 1182203                | 160.69               | 22559                     | 240                    | 0.00                 | 0                         | 650602                 | 1617.08              | 34665                     | 0                      | 0.00                 | 0                         |              |
| Goa              | 282                    | 0.00                 | 0                         | 6                      | 0.00                 | 0                         | 315                    | 0.00                 | 0                         | 3                      | 0.00                 | 0                         |              |
| Gujarat          | 1143768                | 219063.62            | 850725                    | 32772                  | 1172.82              | 16035                     | 1005105                | 3808.55              | 42521                     | 27114                  | 1.51                 | 304                       | 65           |
| Haryana          | 2434                   | 6.82                 | 403                       | 4508                   | 1.41                 | 207                       | 0                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         |              |
| Himachal Pradesh | 16372                  | 73.33                | 2366                      | 12169                  | 0.00                 | 0                         | 11017                  | 36.75                | 1396                      | 0                      | 0.00                 | 0                         | 1            |
| Jharkhand        | 395693                 | 956.13               | 60320                     | 18141                  | 64.53                | 2077                      | 188478                 | 15.81                | 2635                      | 0                      | 0.00                 | 0                         |              |
| Karnataka        | 422250                 | 12970.93             | 183328                    | 124268                 | 2911.64              | 66461                     | 236001                 | 1309.42              | 21652                     | 0                      | 0.00                 | 0                         |              |
| Kerala           | 9469                   | 7.70                 | 185                       | 19991                  | 472.50               | 8601                      | 6898                   | 7.65                 | 374                       | 11386                  | 76.54                | 627                       |              |
| Madhya Pradesh   | 2032541                | 7507.77              | 74565                     | 1986125                | 31681.63             | 359509                    | 2337102                | 218906.14            | 1421570                   | 2362060                | 43333.17             | 591192                    | 245          |
| Maharashtra      | 1330087                | 20153.40             | 417062                    | 992274                 | 56584.98             | 900875                    | 1484258                | 8854.86              | 287244                    | 258231                 | 1468.79              | 67303                     | 447          |
| Manipur          | 4992                   | 466.51               | 4992                      | 683                    | 0.00                 | 0                         | 5030                   | 0.00                 | 0                         | 0                      | 0.00                 | 0                         |              |
| Meghalaya        | 1556                   | 0.00                 | 0                         | 1584                   | 0.00                 | 0                         | 2280                   | 5.09                 | 94                        | 1197                   | 0.00                 | 0                         |              |
| Mizoram          | 0                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         |              |
| Orissa           | 1445986                | 6119.35              | 87601                     | 76983                  | 543.88               | 12068                     | 1309088                | 39741.67             | 373261                    | 0                      | 0.00                 | 0                         | 180          |
| Rajasthan        | 0                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         |              |
| Sikkim           | 0                      | 0.00                 | 0                         | 4                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         |              |
| Tamilnadu        | 96708                  | 3795.86              | 33849                     | 986222                 | 89897.16             | 887373                    | 99918                  | 2157.88              | 27037                     | 476424                 | 44448.22             | 170586                    |              |
| Telangana        |                        |                      |                           |                        |                      |                           |                        |                      |                           |                        |                      |                           | 26           |
| Tripura          | 859                    | 0.00                 | 0                         | 79                     | 0.00                 | 0                         | 0                      | 0.00                 | 0                         | 0                      | 0.00                 | 0                         |              |

| Uttar Pradesh   |   736405 |    929.04 |   28107 |   1030826 |   2866.94 |   106910 |   853919 |   13097.30 |   182809 |       0 |      0.00 |      0 | 0   |
|-----------------|----------|-----------|---------|-----------|-----------|----------|----------|------------|----------|---------|-----------|--------|-----|
| Uttarakhand     |    24676 |     19.13 |    1894 |     15472 |     39.49 |     1219 |    13088 |       4.92 |      672 |       0 |      0    |      0 |     |
| West Bengal     |   560436 |   1376.24 |   68882 |    445831 |   2936.7  |   107261 |   574589 |   12400.1  |   298318 |  516392 |  14005.8  | 138162 |     |
| A&NIslands      |      624 |     11.36 |     260 |         0 |      0    |        0 |      962 |      95.47 |      506 |     224 |      0    |      0 |     |
| Puducherry      |     1750 |      0    |       0 |      1709 |     17.12 |      366 |      467 |       3.87 |       38 |    1726 |      1.44 |    122 |     |
| Jammu& Kashmir  |     3812 |      0    |       0 |      7730 |      0.88 |       17 |     4545 |       2.35 |      183 |       0 |      0    |      0 |     |
| TOTAL           | 10649354 | 278579    | 1909594 |   6141677 | 205255    |  2543953 |  9746595 |  310041    |  2785487 | 3973542 | 104361    | 996182 | 968 |

Note: final yield data for caculation of admissibility of claims for some crops of Rabi 2014-15 seasons & Kharif 2015 season are not received from concer

MODIFIED NATIONAL AGRICULTURE INSURANCE SCHEME -

## ALL COMPANIES BUSINESS STATS FROM KHARIF 2012 TO KHA

|                  | Kharif 2012            | Kharif 2012          | Kharif 2012               | Rabi 2012-13           | Rabi 2012-13         | Rabi 2012-13              | Kharif 2013            | Kharif 2013          | Kharif 2013               | Rabi 2013-14           | Rabi 2013-14         | Rabi 2013-14              |           |
|------------------|------------------------|----------------------|---------------------------|------------------------|----------------------|---------------------------|------------------------|----------------------|---------------------------|------------------------|----------------------|---------------------------|-----------|
| State            | No. of Farmers Insured | Claims (in Rs. Lakh) | No. of Farmers benefitted | No. of Farmers Insured | Claims (in Rs. Lakh) | No. of Farmers benefitted | No. of Farmers Insured | Claims (in Rs. Lakh) | No. of Farmers benefitted | No. of Farmers Insured | Claims (in Rs. Lakh) | No. of Farmers benefitted | N Far Ins |
| Andhra Pradesh   | 493054                 | 42456.78             | 277140                    | 35364                  | 381.54               | 5403                      | 475324                 | 32897.48             | 260126                    | 21910                  | 458.85               | 4119                      | 1         |
| Andaman &Nicobar |                        |                      |                           |                        |                      |                           |                        |                      |                           |                        |                      |                           |           |
| Assam            | 2722                   | 59.80                | 388                       | 2229                   | 27.75                | 840                       | 3471                   | 0.00                 | 0                         | 827                    | 0.00                 | 0                         |           |
| Bihar            | 386487                 | 4766.34              | 51966                     |                        |                      |                           | 430853                 | 14620.37             | 176997                    |                        |                      |                           | 4         |
| Goa              |                        |                      |                           |                        |                      |                           |                        |                      |                           |                        |                      |                           |           |
| Gujarat          | 120                    | 0.00                 | 0                         |                        |                      |                           |                        |                      |                           |                        |                      |                           |           |
| Haryana          | 44908                  | 679.84               | 6425                      | 43637                  | 426.67               | 11201                     | 44166                  | 341.11               | 4303                      | 48523                  | 116.47               | 3156                      |           |
| Jharkhand        | 24352                  | 19.37                | 713                       | 3408                   | 2.27                 | 152                       | 27436                  | 235.73               | 5219                      | 9666                   | 0.82                 | 105                       |           |
| Karnataka        | 226767                 | 5004.03              | 51383                     | 2083                   | 5.17                 | 154                       | 162390                 | 609.20               | 8738                      | 51135                  | 346.40               | 15968                     | 9         |
| Kerala           |                        |                      |                           |                        |                      |                           |                        |                      |                           |                        |                      |                           |           |
| Madhya Pradesh   |                        |                      |                           | 41465                  | 18.44                | 568                       | 14853                  | 192.32               | 1997                      | 57364                  | 49.43                | 1262                      |           |
| Mizoram          |                        |                      |                           | 59                     | 0.77                 | 59                        |                        |                      |                           |                        |                      |                           |           |
| Orissa           |                        |                      |                           | 21246                  | 297.44               | 4891                      | 295608                 | 20528.63             | 182604                    | 53405                  | 90.40                | 813                       |           |
| Rajasthan        | 677386                 | 3622.70              | 127131                    | 461411                 | 942.54               | 44963                     | 751403                 | 4617.40              | 242952                    | 1674861                | 8568.05              | 261661                    | 25        |
| Tamil Nadu       | 154545                 | 5647.87              | 87926                     | 7684                   | 374.99               | 3459                      | 101344                 | 11100.61             | 70778                     | 117882                 | 4274.19              | 46536                     |           |
| Telengana        |                        |                      |                           |                        |                      |                           |                        |                      |                           |                        |                      |                           |           |
| Uttar Pradesh    | 34854                  | 82.54                | 1855                      | 30468                  | 9.51                 | 1381                      | 38842                  | 96.98                | 5220                      | 659235                 | 24251.48             | 266670                    | 6         |

| Uttarakhand   | 17250   | 6.08     | 710    |   2943 |    0.00 |      0 | 15644   | 229.92   | 3671   |    6627 |    8.28 |    351 |    |
|---------------|---------|----------|--------|--------|---------|--------|---------|----------|--------|---------|---------|--------|----|
| West Bengal   |         |          |        | 297012 | 2874.47 |  40264 |         |          |        |  295969 | 14593.1 | 202453 | 10 |
| Total         | 2062445 | 62345.36 | 605637 | 949009 | 5361.55 | 113335 | 2361334 | 85469.75 | 962605 | 2997404 | 52757.5 | 803094 | 58 |

Note: final yield data for caculation of admissibility of claims for some crops of Rabi 2014-15 seasons & Kharif 2015 season are not received from conc

## WEATHER BASED CROP INSURANCE SCHEME-WBCIS

## ALL COMPANIES BUSINESS STATS FROM KHARIF 2012 TO KHA

|                  | Kharif 2012            | Kharif 2012          | Kharif 2012               | Rabi 2012-13           | Rabi 2012-13         | Rabi 2012-13              | Kharif 2013            | Kharif 2013          | Kharif 2013               | Rabi 2013-14           | Rabi 2013-14         | Rabi 2013-14              |
|------------------|------------------------|----------------------|---------------------------|------------------------|----------------------|---------------------------|------------------------|----------------------|---------------------------|------------------------|----------------------|---------------------------|
| State            | No. of Farmers Insured | Claims (in Rs. Lakh) | No. of Farmers benefitted | No. of Farmers Insured | Claims (in Rs. Lakh) | No. of Farmers benefitted | No. of Farmers Insured | Claims (in Rs. Lakh) | No. of Farmers benefitted | No. of Farmers Insured | Claims (in Rs. Lakh) | No. of Farmers benefitted |
| Andhra Pradesh   | 921061                 | 34794.74             | 664708                    | 10791                  | 991.2975             | 8159                      | 820242                 | 28254.97             | 588724                    | 8129                   | 406.8847             | 5036                      |
| Assam            |                        |                      |                           |                        |                      |                           |                        |                      |                           | 859                    | 35.39695             | 853                       |
| Bihar            | 1229325                | 16091.74             | 922676                    | 1637208                | 33452.09             | 1584740                   | 1430926                | 55116.11             | 1411955                   | 2153117                | 15830.16             | 1808448                   |
| Chhatisgarh      |                        |                      |                           | 104939                 | 1284.823             | 61613                     |                        |                      |                           | 98415                  | 7324.957             | 98415                     |
| Gujarat          |                        |                      |                           |                        |                      |                           |                        |                      |                           |                        |                      |                           |
| Haryana          | 60721                  | 462.541              | 43298                     | 65126                  | 1771.158             | 39994                     | 78053                  | 1280.882             | 71662                     | 92474                  | 983.4076             | 64129                     |
| Himachal Pradesh | 1322                   | 10.24966             | 462                       | 41324                  | 952.8342             | 17562                     | 816                    | 3.970667             | 816                       | 66171                  | 942.9039             | 40057                     |
| Jharkhand        | 77721                  | 790.4268             | 69686                     | 29361                  | 103.1265             | 17965                     | 118600                 | 2702.272             | 111285                    | 68801                  | 657.3519             | 47003                     |
| Jammu &Kashmir   |                        |                      |                           |                        |                      |                           |                        |                      |                           |                        |                      |                           |
| Karnataka        | 210557                 | 4288.887             | 205144                    | 2063                   | 82.95578             | 1140                      | 202066                 | 3820.782             | 177368                    | 4174                   | 156.5958             | 2623                      |
| Kerala           | 8243                   | 58.07566             | 7708                      | 20076                  | 541.1204             | 17311                     | 27088                  | 196.2316             | 15267                     | 17097                  | 298.2359             | 13742                     |
| Madhya Pradesh   |                        |                      |                           |                        |                      |                           | 59081                  | 1074.112             | 59081                     | 22354                  | 1809.539             | 22354                     |
| Maharashtra      | 4456                   | 829.3982             | 2879                      | 81778                  | 8920.234             | 30546                     | 12221                  | 371.8493             | 1107                      | 52084                  | 9360.414             | 32496                     |
| Orissa           | 31733                  | 265.9144             | 27893                     |                        |                      |                           |                        |                      |                           |                        |                      |                           |
| Punjab           |                        |                      |                           |                        |                      |                           |                        |                      |                           |                        |                      |                           |
| Rajasthan        | 5381476                | 26803.54             | 4738016                   | 3532536                | 57134.21             | 2213343                   | 5819053                | 20356.34             | 4157503                   | 2609769                | 42547.45             | 1581452                   |
| Tamil Nadu       | 18027                  | 718.5963             | 12627                     | 11509                  | 320.9974             | 7168                      | 12050                  | 510.7969             | 8359                      |                        |                      |                           |
| Telengana        |                        |                      |                           |                        |                      |                           |                        |                      |                           |                        |                      |                           |
| Uttar Pradesh    | 43282                  | 173.4025             | 36832                     | 62105                  | 311.4762             | 58796                     | 229760                 | 4750.244             | 226734                    | 102876                 | 993.3589             | 63775                     |
| Uttarakhand      | 17639                  | 2313.169             | 17639                     | 3196                   | 139.2394             | 2474                      | 38329                  | 1106.282             | 18924                     | 5219                   | 335.7198             | 4239                      |

| West Bengal   |    2560 |   11.19877 |    1259 |    4253 |   76.14677 |    1398 |    5877 |   33.83875 |    5502 |     904 |   2.88731 |     769 |
|---------------|---------|------------|---------|---------|------------|---------|---------|------------|---------|---------|-----------|---------|
| Total         | 8008123 |    87611.9 | 6750827 | 5606265 |     106082 | 4062209 | 8854162 |     119579 | 6854287 | 5302443 |   81685.3 | 3785391 |