Odisha Govt announces Rs 200 crores relief for drought hit distressed farmers

Tags: Economy/Finance State News

Odisha Chief Minister Naveen Patnaik on 15 November 2022 announced an input Assistance of Rs 200 crores for the distressed farmers of the drought-affected areas of the state. The entire expenditure would be borne by the State Government.

About 2,63560 hectares of cropland in 12 districts have suffered crop loss of 33 percent and above due to the drought in the state .  According to the Odisha government many affected farmers have not yet received their Crop Insurance dues from the Insurance companies. 

To help the farmers of the state the Chief Minister has decided to provide assistance out of the state’s own resources.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

• The Government of India launched Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2016 to provide a comprehensive insurance cover against the failure of the crops.
• The scheme has replaced the National Agricultural Insurance Scheme and Modified National Agricultural Insurance Scheme.
• The scheme is being administered by the Union Ministry of Agriculture and Family Welfare. 
• The insurance facilities to the farmers are provided by approved Insurance companies .
• The scheme has been made optional to the farmers since the 2020 Kharif season.

Premium to be paid for crop insurance by the farmers 

Government has fixed the premium which has to be paid by the farmers. They are as follows:

• For the Kharif crops (all food grains and oil seeds) the farmer has to pay 2% of the premium.
• For the Rabi crops (all food grains and oil seeds) the farmers will pay 1.5% of the premium.
• For the annual (Rabi and Kharif) horticulture and commercial crops the farmers will pay 5% of the premium.
• The rest of the premium amount is shared by the Central government and the concerned state government.