Maharashtra, one of the major States to participate in the Pradhan Mantri Fasal Bima Yojana (PMFBY) with more than 1 crore farmer applications every year might opt out of the scheme. The State government is considering launching its own crop insurance scheme for farmers as per their demand

In the meeting with State Agriculture Minister Dada Bhuse in Mumbai on Tuesday, various farmers’ organisations pushed for the State the level crop insurance scheme and the Minister said that the government will consider the demand. 

He ordered the Agriculture Department officials to draft the proposal based on the demands made by farmers. Bhuse said that the government will consider all the issues raised by farmers and also follow up with the union government for the pending insurance dues under the PMFBY. 

Farmer leaders claimed that the majority of farmers in the State are not receiving insurance claims under PMFBY. Leaders also alleged that the assessment of crop damage under the scheme was faulty. Maharashtra farmers have enthusiastically participated in the PMFBY since its inception from Kharif 2016 season.

The PMFBY is voluntary for States and UTs as well as for farmers. States/UTs can participate in the scheme keeping in view their risk perception and financial considerations etc. Since the inception of the scheme 27 States and UTs implemented the PMFBY in one or more seasons.

State schemes 

Andhra Pradesh has started Dr. YSR Free Crop Insurance Scheme, while Bihar has launched Bihar Rajya Fasal Sahayata Yojana. Gujarat has its own Mukhyamantri Sahay Yojana while West Bengal is implementing Bangla Shashya Bima. Jharkhand has its own Fasal Rahat Yojana. 

“The State will work on schemes beneficial to farmers and effectively execute them,” said Bhuse in the meeting. He warned that the State government will consider not paying its share in the PMFBY if farmers don’t receive a second installment of insurance claims. Politicos present in the meeting supported the demand saying that farmers are suffering in the PMFBY.

Why delay in claim payments?

The Union Ministry of Agriculture in December last year told Rajya Sabha settlement of a few claims in some States got delayed due to reasons like delayed transmission of yield data and late release of their share in premium subsidy by some State governments to insurance companies.

The delays were also attributed to yield-related disputes between insurance companies and States, non-receipt of account details of some farmers for transfer of claims to the bank account of eligible farmers, and National Electronic Fund Transfer (NEFT) related issues.

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