Jharkhand may rejoin Centre’s PM Fasal Bima Yojana
3 min read 02 Jul 2023, 09:23 PM ISTThe state is mulling to re-enter PMFBY scheme amid predictions of El Nino compromising monsoon rainfall.
PremiumJharkhand, which opted out Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2020-21, is likely to rejoin the crop insurance scheme from the next Kharif season, according to two government officials.
The state is mulling to re-enter PMFBY scheme amid predictions of El Nino compromising monsoon rainfall. Two-thirds of the state witnessed drought last year. Rain deficiency in Jharkhand, a drought prone region, remains 64% in June.
PMFBY was introduced in Kharif 2016 season. Since inception of the scheme, 27 states and union territories implemented the crop insurance scheme in one or more seasons. However, seven states including Bihar in 2028-19, West Bengal in 2019-20, and Jharkhand 2020-21 opted out of the scheme after implementing it for some seasons because of their own reasons like perception about risk and financial constraints.
“Until a state tests the scheme, it will not realise the benefits of PMFBY," one of the government officials said. “The objective of a crop insurance scheme is that a claim is given if faced with any natural calamities. When there is a natural calamity in a particular region, they get to test the delivery of the scheme."
“Last year there was a severe drought in Jharkhand, and the state had submitted nearly 10,000 crore memoranda of finance to the Centre for assistance. They then reverse calculated and felt the scheme is beneficial. Therefore, they are now planning to rejoin the Centre’s crop insurance scheme," the official added.
Queries sent to the ministry of agriculture and farmers welfare on Sunday remained unanswered till press time.
Due to the efforts of ministry of agriculture and farmers welfare, Andhra Pradesh has re-joined the scheme in Kharif 2022 season and Punjab has made a budget announcement to do so. The PMFBY is available for all states and UTs and is voluntary for them. They are free to subscribe under the scheme keeping in view their risk perception and financial considerations etc. The scheme is also voluntary for the farmers to enroll themselves as per their risk perception.
“Jharkhand will not have to spend a lot in terms of crop insurance as the state’s area is mostly dedicated to forest and mining. They don’t have much area under agriculture, and wheat, paddy and maize are three major crops that Jharkhand grows in both Kharif and Rabi seasons," the official said.
“Total subsidy of the state is expected to be around ₹350-400 crores; around ₹200 crores will be the farmers’ share and ₹400 crores will be paid the Centre. Total expected premium for Jharkhand under PMFBY is estimated to be around ₹1,000 crores.," the official added.
The premium under the scheme is determined through bidding. However, farmers must pay a maximum of 2% for Kharif, 1.5% for Rabi food and oilseed crops and 5% for commercial and horticultural crops. The balance of actuarial or bidded premium is shared by the Centre and state government on 50:50 basis and 90:10 in case of northeastern states from Kharif 2020 season as per provisions of the scheme.
The premium rate of crops depends on the risk associated with them and total liability of the state depends on actuarial or bidded premium rate, sum insured of crops, area insured, and number of crops notified by the states.
