Chouhan said that while the earlier system excluded debt-free farmers from insurance, the new policy includes provisions for them as well.
The union minister for agriculture and farmers’ welfare, Shivraj Singh Chouhan, detailed significant enhancements and ongoing challenges related to the Pradhan Mantri Fasal Bima Yojana (PMFBY) during a question hour session in Parliament on Tuesday. Addressing lawmakers, Chouhan emphasized the transformative changes made to the scheme, aimed at resolving issues present in previous crop insurance programs.
Chouhan noted that earlier crop insurance schemes were fraught with difficulties, including high premiums, delayed claim settlements, and various objections from farmers and their organisations. The introduction of PMFBY has, according to Chouhan, markedly improved these issues. “When we compare the new scheme with its predecessors, the difference is clear,” Chouhan said. He highlighted a substantial increase in farmer participation, with applications rising from 3.51 crore under previous schemes to 8.69 crore currently. This includes a leap in non-loanee farmer applications from 20 lakh to 5.48 crore.
The minister explained that previous insurance models were compulsory and premiums were automatically deducted by banks. The current scheme, however, allows farmers to choose whether or not they want to participate. Chouhan added that while the earlier system excluded debt-free farmers from insurance, the new policy includes provisions for them as well. As of 2023, the scheme has expanded coverage from 5.01 lakh hectares to 5.98 lakh hectares, and now includes 3.97 crore farmers.
In a bid to streamline the process, the government has introduced several key reforms. Notably, loss assessment under PMFBY will now be conducted using remote sensing technology for at least 30 per cent of cases, replacing the previous visual assessment method. Additionally, insurance companies are required to pay a 12 per cent penalty directly to farmers if there is a delay in processing claims. Chouhan attributed some delays to state governments’ tardiness in releasing their share of the premium subsidy. To address this, the central government has now ensured that its share of funds is released promptly, regardless of state contributions.
Chouhan also explained that the PMFBY operates under three distinct models, with the central government setting policy parameters while state governments select their preferred model. He clarified that while the scheme is available nationwide, states have the option to adopt it based on their preferences. Bihar, for example, has opted not to implement PMFBY, instead relying on its own state-specific insurance scheme.
Overall, Chouhan underscored the government’s commitment to making crop insurance more accessible and effective for farmers, addressing past shortcomings, and ensuring timely support. The enhancements to PMFBY reflect a broader effort to foster greater confidence and participation among the agricultural community, thereby safeguarding farmers’ interests against the risks associated with crop production.
