PMFBY: This State Might Opt-Out from Pradhan Mantri Fasal Bima Yojana; Here’s Why

In the past six years, the Modi government has come up with numerous ambitious schemes for the farmers to help them uplift their financial status and to boost the agriculture industry. While looking at the ground reality, many schemes have proven to be beneficial for the farmers if we go by the statistics. One such hit scheme for farmers is Pradhan Mantri Fasal Bima Yojana, which aims at providing financial assistance to the farmers who suffer from crop loss or damage arising out of unforeseen events.  

While the scheme stands out quite promising in many states and farmers are reaping benefits, there is one state where the farmers don’t seem to be satisfied with the benefits of the scheme, and hence, the state might opt-out from the PM crop insurance scheme. We are talking about Madhya Pradesh.

According to statistics, Madhya Pradesh accounts for around one-fourth of the total area insured under the PMFBY. The total premium collected from the state under the crop insurance scheme is also quite high. In the year 2018-19, approximately 130 lakh hectares of Kharif and rabi crops were insured under the scheme in the MP while the rest of the country had 519 lakh hectares. Moreover, the state spent ₹2,322 crores on the scheme.  

Despite this, the state government officials think they can provide better insurance coverage to the farmers rather than spending on the government’s ambitious scheme, as per sources. The sources also said that the state is planning to set up a trust which would give coverage to all its 1.02 crore farmers at a nominal rate.  

“We feel that if a trust is formed to give insurance cover to the farmers, everybody is going to benefit from it. Firstly, we would be able to provide a universal cover to all farmers. Secondly, we can mobilize CSR funds for the purpose, bringing down the money spent as State premium subsidy,” as told by a source. 

Source: The Hindu Businessline