NEW DELHI: Bihar’s new scheme to assist farmers in case of crop loss has created some unease at Centre. The Union agriculture ministry apprehends that the state’s transfer might power small and marginal farmers away from the central flagship crop insurance scheme - Prime Minister Fasal Bima Yojana (PMFBY) - which has already extended its footprints across the nation in spite of reporting some teething issues and extend in settling claims.
The Bihar govt had early this month introduced a scheme where farmers will get Rs 7,500 per hectare (most for 2 hectares) if the manufacturing loss is lower than 20% of threshold limit and Rs 10,000 per hectare (most for 2 hectares) if the loss in manufacturing is greater than 20%. Farmers is not going to must pay the rest in advance to get such relief.
The threshold limit will likely be calculated on the foundation of average manufacturing of the remaining seven years. The scheme - Bihar State Crop Assistance Scheme - will come into drive from the continuing Kharif season.
Though the Bihar’s scheme is not an insurance scheme and due to this fact it'll run at the same time as with the PMFBY, officials within the agriculture ministry have already felt the pinch of it on the time when they've been attempting onerous to promote the central scheme enlisting the way it benefited extra farmers all over the primary year (2016-17) of its release as compared to earlier schemes.
A bit inside the ministry felt that the Bihar’s scheme will deter small and marginal farmers (having land holdings up to two hectares) from opting PMFBY which might, another way, supply them a lot bigger relief in lieu of very small top class.
“The amount and scale of repayment underneath the Bihar’s scheme will likely be very low as compared to the PMFBY,” said an reputable.
Arguing in favour of the central flagship scheme, he said the farmers would get minimal Rs 13,600 per hectare on 20% crop loss of paddy underneath the PMFBY as compared to Rs 7,500 underneath the Bihar’s scheme.
“In case of crop loss of greater than 20%, the farmers will get an amount between Rs 13,600 and Rs 68,000 per hectare in case of paddy as compared to Rs 10,000 per hectare underneath Bihar’s scheme,” said the officials, flagging importance of the crop insurance scheme.
Asked about the state’s apprehension that the PMFBY had benefited extra to insurance firms than the farmers, any other reputable said the profit or loss will depend on climate prerequisites. “Insurance firms had paid extra ‘claim amount’ than the ‘gross top class’ in 2014-15 and 2015-16 that have been drought years. Most of the companies had, alternatively, booked income in 2016-17 which was once just right monsoon year. This is how insurance trade runs. Profit in just right monsoon year may also be utilised in dangerous monsoon year,” he said.
The ministry’s knowledge shows that the farmers in certain states that have been hit via drought or every other calamity even in 2016-17 got some great benefits of the PMFBY as the insurance firms there needed to pay extra ‘claim amount’ than the ‘gross top class’. Kerala, Karnataka, Tamil Nadu and Andhra Pradesh are such examples.
During Kharif 2016, general top class paid via farmers and governments (both centre and state - 49% every) stood at Rs eight.58 crore in Kerala while the entire claim paid to the farmers was once approximately Rs 18 crore. Similarly, in drought-hit Karnataka, the farmers and governments had collectively paid Rs 873.35 crore as top class while the farmers within the state had received over Rs 1,165 crore as claim amount.
However, extend in paying ‘claim amount’ remains to be an issue. Though the Centre is pursuing with the states and other stakeholders to undertake new technology on the earliest so that well timed claim settlement is ensured, farmers in many states have to attend somewhat lengthy to get claims.
The PMFBY was once introduced from Kharif 2016 season. So far, 26 states have opted for the scheme. These are: Andhra Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Odisha, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, Uttarakhand and West Bengal.
The Centre has mounted a target of overlaying 50% of ‘Gross Cropped Area’ (GCA) underneath the PMFBY via the year 2018-19. At provide, over 30% of the GCA is covered underneath the crop insurance scheme.
The Bihar govt had early this month introduced a scheme where farmers will get Rs 7,500 per hectare (most for 2 hectares) if the manufacturing loss is lower than 20% of threshold limit and Rs 10,000 per hectare (most for 2 hectares) if the loss in manufacturing is greater than 20%. Farmers is not going to must pay the rest in advance to get such relief.
The threshold limit will likely be calculated on the foundation of average manufacturing of the remaining seven years. The scheme - Bihar State Crop Assistance Scheme - will come into drive from the continuing Kharif season.
Though the Bihar’s scheme is not an insurance scheme and due to this fact it'll run at the same time as with the PMFBY, officials within the agriculture ministry have already felt the pinch of it on the time when they've been attempting onerous to promote the central scheme enlisting the way it benefited extra farmers all over the primary year (2016-17) of its release as compared to earlier schemes.
A bit inside the ministry felt that the Bihar’s scheme will deter small and marginal farmers (having land holdings up to two hectares) from opting PMFBY which might, another way, supply them a lot bigger relief in lieu of very small top class.
“The amount and scale of repayment underneath the Bihar’s scheme will likely be very low as compared to the PMFBY,” said an reputable.
Arguing in favour of the central flagship scheme, he said the farmers would get minimal Rs 13,600 per hectare on 20% crop loss of paddy underneath the PMFBY as compared to Rs 7,500 underneath the Bihar’s scheme.
“In case of crop loss of greater than 20%, the farmers will get an amount between Rs 13,600 and Rs 68,000 per hectare in case of paddy as compared to Rs 10,000 per hectare underneath Bihar’s scheme,” said the officials, flagging importance of the crop insurance scheme.
Asked about the state’s apprehension that the PMFBY had benefited extra to insurance firms than the farmers, any other reputable said the profit or loss will depend on climate prerequisites. “Insurance firms had paid extra ‘claim amount’ than the ‘gross top class’ in 2014-15 and 2015-16 that have been drought years. Most of the companies had, alternatively, booked income in 2016-17 which was once just right monsoon year. This is how insurance trade runs. Profit in just right monsoon year may also be utilised in dangerous monsoon year,” he said.
The ministry’s knowledge shows that the farmers in certain states that have been hit via drought or every other calamity even in 2016-17 got some great benefits of the PMFBY as the insurance firms there needed to pay extra ‘claim amount’ than the ‘gross top class’. Kerala, Karnataka, Tamil Nadu and Andhra Pradesh are such examples.
During Kharif 2016, general top class paid via farmers and governments (both centre and state - 49% every) stood at Rs eight.58 crore in Kerala while the entire claim paid to the farmers was once approximately Rs 18 crore. Similarly, in drought-hit Karnataka, the farmers and governments had collectively paid Rs 873.35 crore as top class while the farmers within the state had received over Rs 1,165 crore as claim amount.
However, extend in paying ‘claim amount’ remains to be an issue. Though the Centre is pursuing with the states and other stakeholders to undertake new technology on the earliest so that well timed claim settlement is ensured, farmers in many states have to attend somewhat lengthy to get claims.
The PMFBY was once introduced from Kharif 2016 season. So far, 26 states have opted for the scheme. These are: Andhra Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Odisha, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, Uttarakhand and West Bengal.
The Centre has mounted a target of overlaying 50% of ‘Gross Cropped Area’ (GCA) underneath the PMFBY via the year 2018-19. At provide, over 30% of the GCA is covered underneath the crop insurance scheme.
Centre feels the pinch of Bihar's new scheme of assisting farmers for crop loss
![Centre feels the pinch of Bihar's new scheme of assisting farmers for crop loss]()
Reviewed by Kailash
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June 17, 2018
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