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.
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.
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