Sunday January 20, 2019
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New crop insurance plan for farmers gets govt approval


New Delhi: In a bid to provide respite to the drought affected farmers, Centre today passed a crop insurance scheme, namely the Pradhan Mantri Fasal Bima Yojana (PMFBY) after the country faced drought for two years consecutively. The scheme keeps farmers’ premium at a maximum of 2 per cent for foodgrains and oilseeds and up to 5 per cent for horticulture/cotton crops.

The much awaited scheme was cleared at the Cabinet meeting which was headed by Prime Minister Narendra Modi. It is to be implemented from the Kharif season this year.

“The cabinet has cleared the Agriculture Ministry’s proposal on new crop insurance scheme,” sources said.

PMFBY will be replacing the existing two schemes, National Agricultural Insurance Scheme as well as Modified NAIS. The schemes have had some inherent setbacks.

It has approved farmers’ premium between 1.5 to 2 per cent for foodgrains and oilseeds crops, and up to 5 per cent for horticultural and cotton crops, the sources further said.

For rabi foodgrains, the farmer’s premium is fixed at 1.5 per cent while 2 per cent is decided for Kharif foodgrains and oilseeds crops. For horticultural and cotton crops it has been fixed at up to 5 per cent for both the seasons.

Sources estimate the PMFBY will likely increase the insurance coverage to 50 per cent of the total crop area of 194.40 million hectares from the existing level of about 25-27 per cent crop area. Rs 9500 crore is estimated to be the expenditure.

There will not be a cap on the premium and reduction of the sum insured in PMFBY, the sources said. Moreover, one insurance company will be allotted for the entire state and farm level assessment for localised risk loss and post-harvest loss. Also, 25 per cent of the likely claim will be settled directly on the farmers account.

The scheme will be administered by the Agriculture Insurance Company of India Ltd along with private insurance companies. The government will provide upfront premium subsidy and all claim liability will be on the insurer.

The new scheme is said to be of vital importance as the country faces improper monsoon rains resulting in severe droughts for the second straight year. Moreover, the government aims to protect farmers from the eccentricities of monsoon by enhancing insurance cover to more crop area.

(picture courtesy:

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Now India is One of The Most Open Countries for FDI: Narendra Modi

Modi had conceptualised the summit as Gujarat Chief Minister in 2003 to position the state as an ideal investment destination after the 2002 riots.


Prime Minister Narendra Modi on Friday said that his government had made doing business in India easier, cheaper, faster and smarter with his term accounting for almost 45 per cent of the Foreign Direct Investment (FDI) that the country received in the last 18 years.

Speaking at the inaugural function of the Vibrant Gujarat Global Summit 2019 here, he said India was now one of the most open countries for FDI with over 90 per cent approvals put on the automatic route.

“In the last four years, we have received FDI worth $263 billion. This is 45 per cent of the FDI received in last 18 years,” Modi told the gathering.

He said India was among the top 10 FDI destinations.

PM Speaks on FDI

Modi, who is on a three-day visit to his home state to throw open his pet biennial Vibrant Gujarat Global Summit, said the India of today was a land of “immense opportunities” being the only place that offered democracy, demography and demand.

“Fifty cities in India are ready to build metro rail systems. We have to build 50 million houses. The requirement of road, rail and waterways is enormous. We want world class technologies to achieve our goal in a faster and cleaner way. India is thus, a land of immense opportunities.” he said.

The Prime Minister said the challenge for India, as in most emerging economies, was to grow horizontally as well as vertically to ensure that the benefits of development spread to regions and communities that have lagged behind while also meeting enhanced expectations in terms of quality of life, quality of services and quality of infrastructure.

“We are well aware that our achievements, here in India, will directly impact one sixth of humanity.”

Modi said his government had removed the barriers which were preventing India from achieving its full potential and now it was ready for business like never before.

The government has made doing business easier. cheaper, faster and smarter, he said.

“In the last four years, we have jumped 65 places in the global ranking of World Bank’s Doing Business Report. From 142 in 2014 to 77 now, but we are still not satisfied. I have asked my team to work harder so that India is in the top 50 next year.

“We have also made doing business cheaper. The historic implementation of Goods and Services Tax and other measures of simplification and consolidation of taxes have reduced transaction costs and made processes efficient.

“We have also made doing business faster through digital processes, online transactions and single point inter-faces,” he said.

According to LocalCircles, each person who voted in the survey is registered with the portal with their detailed information and in many cases they shared their residential address.
Doing business in India now easier, cheaper, faster, smarter: Modi

He said his government had made doing business smarter by insisting on IT based transactions and digital payments including direct transfer of government benefits.

Modi added that he understood that being a young nation, India needs to create job opportunities and better infrastructure, which are both linked with investments.

“Therefore, in recent years, there has been unprecedented focus on manufacturing and infrastructure,” he said.

Listing the achievements of his government, he said for the first time, India had become a net exporter of electricity, had installed transmission lines at an unprecedented pace and had doubled the speed of road construction with rural road connectivity now at 90 per cent.

Also Read: PM Narendra Modi to Unveil National Film Museum in Mumbai

“At 7.3 per cent, the average GDP growth, over the entire term of our government, has been the highest of any Indian government since 1991. At the same time,the rate of inflation at 4.6 per cent is the lowest for any Indian government since 1991, when India began its process of liberalisation,” he said.

Modi had conceptualised the summit as Gujarat Chief Minister in 2003 to position the state as an ideal investment destination after the 2002 riots. (IANS)