New Crop Insurance Scheme Underway in Telangana, Says Agriculture Minister

Agriculture Minister Singireddy Niranjan Reddy criticized the Pradhan Mantri Fasal Bima Yojana (PMFBY) introduced by the Modi government, stating that it had failed to effectively assist farmers during times of need.

He announced that the State government was actively developing a comprehensive crop insurance scheme to better support farmers in situations of natural calamities.

In response to a query from Congress member T Jeevan Reddy during the Question Hour in the State Legislative Council, Minister Niranjan Reddy revealed that the State government was in the process of devising a crop insurance program that could provide meaningful relief to farmers when faced with adverse weather conditions.

To create an effective scheme, the government was closely examining successful crop insurance models implemented in other states, with a specific focus on those adopted by Rajasthan and West Bengal.

The Minister acknowledged that insurance companies engage in crop insurance programs primarily for profit, highlighting the need for a working model that could ensure mutual benefits for both farmers and insurance companies. He emphasized that thorough research and analysis were being conducted to establish a well-rounded crop insurance framework.

Reflecting on the PMFBY, Minister crop insurance​ expressed disappointment in the program's performance. Although it was initially anticipated to offer much-needed support to farmers contending with uncertain monsoons, untimely rains, droughts, and floods, the scheme ultimately fell short in providing relief. He criticized the program's numerous issues, including substantial unpaid dues for farmers amounting to thousands of crores, while insurance companies reap the financial gains.

Consequently, several states, including Telangana, Andhra Pradesh, Bihar, Jharkhand, West Bengal, and Gujarat, chose to withdraw from the PMFBY.

The Minister highlighted that both the State and Central governments had collectively contributed a premium of Rs. 2,415 crores over four years.

However, the actual claims received by farmers only amounted to around Rs. 1,893 crores, resulting in a considerable loss of Rs. 525 crores. Given the perceived lack of benefits for farmers, the State opted out of the PMFBY scheme in favour of crafting a more advantageous alternative that genuinely prioritizes their needs.

Minister Niranjan Reddy also underlined the State government's current efforts to support farmers affected by hailstorms. By offering an input subsidy of Rs. 10,000 per acre for crop losses incurred during March and April, the government has already released Rs. 151.65 crores for this purpose. An additional Rs. 160 crore is slated for imminent release to further aid farmers in need.