Revamped PMFBY: Odisha govt to pay farmers’ premium
BHUBANESWAR: Keeping its promise of providing free crop insurance, the state government has advised all farmers including sharecroppers and tenants to enrol their names under Pradhan Mantri Fasal Bima Yojana (PMFBY) for kharif-2023 crop season.
As per the revamped PMFBY operational guidelines and approval of the state-level coordination committee on crop insurance (SLCCCI), the state government has come out with a resolution to take care of the farmers’ share of premium under the crop insurance scheme for three years from this kharif season.
Farmers usually pay the premium at the rate of 2 per cent of sum insured (SI) for notified kharif and 1.5 per cent of SI for rabi crops. However, commercial crops attracts a premium at the rate 5 per cent of SI for enrolment under the scheme. The differential amount of the actuarial premium is paid as subsidy and shared by Central and state governments equally.
In order to increase the coverage of farmers and cultivated area under the insurance scheme, the state government has initiated a proactive measure to bear the cost of the farmers’ share of premium out of its own resources to ensure small and marginal farmers are not deprived of the benefits of the scheme. The premium subsidy extended by the state government is over and above the normal share of state subsidy under the scheme.
However, this benefit has been limited to two hectare (around five acre) per farmer so that the resources of the state are targeted more towards supporting small and marginal farmers. Farmers doing registration for more than two hectare will have to pay their share of premium over and above two hectare subsidised by the government. A token `1 will be debited from the accounts of farmers who enrol under the scheme during validation. The last date of enrolment is July 31.
Under the revamped PMFBY, final yield of farmer is insured along with losses due to prevented sowing, mid-season adversity, localised calamity and post-harvest damages. The scheme is being implemented by insurance companies selected once every three years through an open bidding process from companies empanelled by the Centre.