Uttar Pradesh, Haryana, Tamil Nadu among 11 states with reduced number of insured farmers

NEW DELHI: In response to a question, Minister for Agriculture and Farmers' Welfare Narendra Singh Tomar told the Parliament that the area insured under the flagship agriculture insurance scheme, Pradhan Mantri Fasal Bima Yojana, has reduced in the past two years. 

Data shows that the insured area has been reduced to 459 lakh hectares in 2021-22 from 495 lakh hectares in 2020-21. 

The major states where the insured area is reduced are Assam, Chhattisgarh, Haryana, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Tripura and Uttar Pradesh. 

Madhya Pradesh has seen the largest decline (13.23 lakh hectares) followed by Rajasthan (6.82 lakh hectares) and Assam (4.68 lakh hectares). 

Only three states, Himachal Pradesh, Karnataka and Uttarakhand, have witnessed an increase in insured areas. 

The Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-Based Crop Insurance Scheme (RWBCIS) were launched in 2016 to provide farmers with affordable crop insurance against non-preventable natural risks from pre-sowing to post-harvest stage

Under PMFBY, farmers pay a premium of up to 2% (for Kharif crops), 1.5% (for Rabi crops), and 5% (for horticultural crops) of the sum insured. The state (except for north-eastern states) and the central government share the premium burden equally.

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The study shows that between 2018 and 2022, the number of farmers covered under the scheme reduced by 9%  and the sum and area insured decreased by 7% and 5% respectively.

"Even insured farmers' numbers either get stagnant or reduced," said a senior official at the Ministry. He said the primary reason farmers' are not attracted is due to delays in the settlement of claims takes place.

Besides delay in claim settlement, delay in the release of the state share of subsidy and delay in sharing yield data by states to insurance companies discourages insurance companies.

"There were around 18 insurance companies empanelled under the scheme, but later eight of them left by 2020," said the official.

Areas that witnessed a decrease in insured area

• Assam
• Chhattisgarh
• Haryana
• Madhya Pradesh
• Maharashtra 
• Odisha
• Rajasthan 
• Tamil Nadu 
• Tripura 
• Uttar Pradesh

Areas that witnessed an increase in insured area

• Himachal Pradesh
• Karnataka  
• Uttarakhand