In the ongoing Monsoon Session of the Parliament, the Union Ministry of Agriculture and Farmers’ Welfare informed the Rajya Sabha that the number of farmers who have applied for Pradhan Mantri Fasal Bima Yojana [PMFBY] has risen from 623 lakh in 2020-2021 to 1,080 lakh in 2022-2023 [as on June 30, 2023]. This translates as an increase of 73 per cent of enrolments in three years.
Union Agriculture Minister Narendra Singh Tomar, while replying to a question asked by Janata Dal (United) leader Manoj Kumar Sinha on August 4, also mentioned that the share of the Centre’s subsidy for the respective years has come down from 13,029 crores(2020-2021) to 12,246 crores (2021-2022) and further to 11113 crores (2022-2023). This marks a decrease of government subsidy funds by 14.7 per cent in the three years.
Jha had posed questions about the total number of beneficiaries under PMFBY; the details of funds allocated, released and utilised; the steps taken under the scheme to limit crop damage in the country; and whether the government has identified the main reason for crop damage.
The data shared by the minister mentioned that Maharashtra recorded the highest enrolment of farmers under PMFBY — 124.06 lakh in 2020, which fell to 99.01 lakh in the following year and then saw a spike to 107.10 lakh in 2022-2023.
Rajasthan stood second with 107.59 lakh enrolments in 2020, 345.11 lakh in 2021 and 388.97 lakh in 2022.
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Based on the minister’s response to another question asked by Jebi Mather Hisham on July 28, the crop insurance scheme had covered 29.5 per cent of gross cropped area in 2016 — highest coverage on a yearly basis till now. The numbers have fallen in the years thereafter.
“Some States/UTs like Bihar, Telangana, Andhra Pradesh, Jharkhand, West Bengal and Gujarat have opted out of the scheme after implementing it for some seasons due to their own reasons like perception about risk and financial constraints,” Tomar further mentioned.
“The PMFBY is available for all States/UTs and is voluntary for them. States/UTs 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,” he added.
Against a total sum insurance of 1,042,204 crores between 2018-2023, claims worth 101,715 — 9.75 per cent of the sum insured, have been cleared in the last five years.
On the same day, for another question asked by parliamentarian Fauzia Khan, the minister explained that the ‘major reason for delay in settlement of approved claims is delay in receipt of State Government share in premium subsidy’.
Launched in January, 2016, PMFBY aimed at reducing the insurance premium burden on farmers who take loans for their crops, besides protecting them from the impact of adverse weather.
A uniform premium of only two per cent for all kharif [summer] crops and 1.5 per cent for all rabi [winter] crops is paid by the farmers and the remaining premium borne by the central and state governments on a 50:50 basis.
