NEW DELHI: Farmers facing the vagaries of nature can expect some relief under a crop insurance scheme. Many states that have adopted Prime Minister Fasal Bima Yojana (PMFBY) are preparing to roll out some compensation under the scheme, according to reports.
In Madhya Pradesh about 25 lakh farmers are expected to benefit under the insurance scheme with the state likely to disburse Rs 2,900 crore.
The relief is meant for farmers whose crops were affected by natural calamity in 2021-22. The state government has instructed the concerned insurance companies accordingly.
Process has also been initiated to address the peasants’ woes due to unseasonal rainfall and hailstorms this year. In Madhya Pradesh, over 44 lakh farmers are insured under the PMFBY scheme.
Meanwhile, in adjacent Jharkhand, around six lakh farmers are soon expected to receive Rs 810 crore worth of insurance amount. According to reports, the state government has instructed insurance companies to clear pending amounts.
As per the scheme norms, the state is expected to contribute about Rs 362.50 crore and the Union government almost a similar amount for the loans to be disbursed. PMFBY is mainly implemented on an ‘Area Approach’ basis. Admissible claims are worked out and paid directly to the insured farmer’s account by the insurance companies on the yield data.
The data is based on the requisite number of Crop Cutting Experiments (CCEs), per unit area, furnished to such insurance companies by the concerned state Government. This is fixed as per claim calculation formula envisaged in the Operational Guidelines of the scheme subject to receipt of state Government’s requisite share in premium subsidy.
PMFBY is voluntary for both state as well as individual farmers.
