Jharkhand CM hails PM crop insurance scheme

Prime Minister Narendra Modi described the scheme wherein the Centre will provide Rs 8,800 crore annually to make up for nearly all of the premium for the crop insured, as a move “that will transform the lives of the farmers in a big way”.

The new scheme proposes a differential premium method, under which a farmer will pay 2% of the sum insured as premium for kharif crops and 1.5% for rabi crops. Besides MNAIS, the Centre is implementing the National Agricultural Insurance Scheme (NAIS) since 1999 under which premium rates are fixed at 1.5-3.5 per cent for foodgrains and oilseeds crops and actuarial rates for horticultural and cash crops but all claim liability is on the government.

Announcing the new insurance scheme for the farmers, union Home Minister Rajnath Singh said “it would minimise the atmosphere of uncertainty” for farmers.

Hailing the announcement of the Pradhan Mantri Fasal Bima Yojana by the Central Government, Bharatiya Janata Party (BJP) president Amit Shah on Wednesday said it was for the first time after Independence that the Fasal Bima Yojana had been simplified, and various problems faced by farmers rectified.

Prime Minister Narendra Modi on Friday expressed assurance the fresh Harvest Insurance Plan brings in regards to a key change within farmers’ lifestyles, stating it grows the meaning of handles and catastrophe whichever lacked in the present programs. Under MNAIS, premium rates to be paid by farmers are 2-15 per cent while the actuarial premium is up to 57 per cent depending on high-risk crops and areas.

Instead of relying on yield data, which is often delayed, to settle claims, it will use smartphones, remote-sensing data and even drones to assess crop damage.

The scheme will enhance coverage of area under schemes from 23% to 50% of gross cropped area in the next three years. For the crop loss of 70 per cent, he would have got a maximum claim of Rs 10,500 instead of Rs 21,000.

Private insurance companies, along with the Agriculture Insurance Company of India Ltd, will implement the scheme.