Andhra Pradesh government decides to re-join Pradhan Mantri Fasal Bima Yojana

Tags: State News

The Andhra Pradesh government has decided to re-join the ambitious Pradhan Mantri Fasal Bima Yojana.

Important facts

• The Andhra Pradesh government has taken this decision after talks between Agriculture and Farmers Welfare Minister Narendra Singh Tomar and Andhra Pradesh Chief Minister YS Jagan Mohan.

• Andhra Pradesh has decided to implement PMFBY from the Kharif-2022 season.

• With this decision, crops of more than 40 lakh farmers of the state will get insurance cover in case of natural calamity.

• Andhra Pradesh had opted out of PMFBY in 2020 citing high premium prices.

• Gujarat, Bihar, West Bengal, Telangana and Jharkhand are still out of the scheme due to low claim ratio and financial constraints.

About 'Pradhan Mantri Fasal Bima Yojana' (PMFBY) 

• The Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched on 13 January 2016.

• The scheme provides a comprehensive insurance cover to the farmers in the event of crop failure, which helps in stabilising the income of the farmers.

• This includes all food and oilseed crops and annual commercial/horticultural crops for which past yield data is available.

• Central and state governments pay more than 95% of the premium amount, while farmers bear 1.5-5% of the premium amount.

• A 2% premium will be paid for Kharif crops (Paddy or Rice, Maize, Jowar, Bajra, Sugarcane etc.).

• For Rabi crops (wheat, barley, gram, lentil, mustard etc.) 1.5% premium will be paid.

• A 5% premium will be paid for annual commercial and horticultural crops insurance.

• This scheme was mandatory for farmers who received institutional finance before the year 2020, but by changing it, it has been made voluntary for all farmers.

• In order to ensure more efficient and effective implementation of the scheme, necessary reforms in PMFBY were made by the Central Government in the Kharif season of the year 2020.