Prime minister Narendra Modi has directed the agriculture ministry to get an evaluation done by independent agencies of government’s flagship schemes — crop insurance and soil health card. The idea behind the move is undertaking a course correction, if needed. Modi has told the ministry there is a requirement of an independent agency (outside the government) to undertake this study, particularly after public criticism of the two schemes, sources said. Acting on the direction, the agriculture ministry may soon appoint agencies to undertake a detailed field survey on these two schemes.

This study will be in addition to the one being entrusted with the National Productivity Council (NPC) and the National Institute of Agricultural Extension Management (MANAGE). According to an NPC study done in 2016, 84 per cent of farmers found information on soil status and nutrient recommendations beneficial to them in reducing the cost of cultivation and improving productivity of crops. According to a Niti Ayog study, the soil health card scheme has been derailed by shoddy implementation as some states have hired private agencies, which employed unskilled and unqualified youth for testing the soil condition.

The study found Uttar Pradesh, Rajasthan and Bihar lagging behind other states. It further pointed out that farmers are being given the cards without required prescription of what to do next after the test.

Farmers also expressed apprehension about the genuineness of the soil health card because they are not provided with any registration number at the submission of the sample.
The Centre has put the blame on states, which in return have transferred the responsibility to the outsourced agencies. CAG and CSE had slammed the government for poor implementation of crop insurance scheme.

The CAG said that during 2011-16, funds to the tune of Rs 3,622.79 crore were released to private insurers without verification. The CSE alleged that insurance firms were charging as high as Rs 40,000 premium for a sum assured of Rs 1 lakh in crop insurance as the government had not put a maximum limit while assuring them to reimburse the entire premium as subsidy and their gross profit is estimated at nearly Rs 10,000 cr from one season.

Acting on the allegation, the agriculture ministry has advised state governments to set up their own crop insurance firms so that they can offer their farmers better services at cheaper rates.

Asked about compulsory insurance of hardy crops like sugarcane, a government official said insurance companies will have to collect premiums for all crops to distribute the risk evenly, otherwise premiums will shoot up very high. Since farmers will have to pay a fixed amount of the sum assured irrespective of crops, any increase in premium will have a bearing on the subsidy outgo of the government, he added.

Under the PM Fasal Bima Yojana, farmers pay maximum 2 per cent of the sum assured for all kharif crops and 1.5 per cent for rabi crops. But for horticultural and commercial crops, they pay a premium at 5 per cent. The rest of premium, quoted by insurance firms is subsidised by the Centre and state under 50:50 plan.