As States delay roll-out, no rich harvest yet for PM’s Fasal Bima Yojana

Crop insurance coverage in the ongoing kharif season under the newly launched Prime Minister’s Fasal Bima Yojana may be lower than 20 per cent with many States delaying its rollout and growers in areas with ample rainfall shying away from buying insurance.

Several States, including Maharashtra, Bihar, Uttar Pradesh, West Bengal and Chhattisgarh, have requested the Centre to extend the last day for insuring farmers, pleading that they started late and require more time to complete the coverage process for the ₹10,600-crore scheme.

The deadline for selling insurance for most crops is July 31 (now extended to August 2 because of the bank strike), while for some with a different crop cycle, it is August 15 or later in the month.

Exception likely “We have told States that they should get insurance companies on board and then come to us for an extension, as the companies have to decide if it is feasible for them to extend the date. While the rules don’t allow an extension, we can make an exception this year,” a government official told BusinessLine .

While 22 States have carried out the tendering process for the scheme — that provides insurance at a highly subsidised and uniform rate of 2 per cent for kharif and 1.5 per cent for rabi — and 19 have notified the scheme, most of the notifications are recent. “This kharif season, we are already getting indications from States that the insurance coverage will be lower than last year’s coverage of about 20 per cent, especially with a large State like Bihar yet to notify its scheme,” the official said.

In Bihar, insurance sale has not started yet, while the deadline for paddy farmers is August 15. Moreover, in Maharashtra, Tamil Nadu and Karnataka, where rains have been plenty, many farmers are reluctant to buy insurance as they feel that they don’t need a cover this season. “This happens in years when monsoon is good but doesn’t affect the total numbers to a large extent,” the official added.

Confident of meeting target Despite low coverage this kharif, the ambitious target of covering 50 per cent of farmers under the PM’s Fasal Bima Yojana in the next few years is achievable as improvement is expected from the upcoming rabi season, the official said.

The PM’s Fasal Bima Yojana launched this kharif is seen as an improvement over the earlier National Agriculture Insurance Scheme because of the low and uniform premium rates, the comprehensive coverage right from pre-sowing to post-harvest, no cap on insurance cover, and the use of modern technology for accurate and quicker information on crop yields and losses.

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