Pradhan Mantri Fasal Bima Yojana (PMFBY) is an important shield to protect the country’s food-providing farmers from the vagaries of weather and to keep their crops safe. But, many times due to the negligence of the state governments or delay in payment of premiums, the farmers were not able to get compensation for their losses on time. Given this serious problem, the central government has now made very necessary and revolutionary reforms in the Pradhan Mantri Fasal Bima Yojana.
Union Agriculture Minister Shivraj Singh Chauhan, while announcing these changes recently, also mentioned the heavy losses suffered by farmers during the previous Jagan Reddy government in Andhra Pradesh. The government’s goal through these changes is to save farmers from the losses caused by the negligence of the state governments and to get them their due benefits on time. Hanuman Beniwal, MP from Nagaur, Rajasthan, had asked the government a question in Parliament regarding the Pradhan Mantri Fasal Bima Yojana, in response to which these important announcements were made.
Why did the farmers of Andhra Pradesh have to bear heavy losses
Responding to Hanuman Beniwal’s question, Union Agriculture Minister Shivraj Singh Chouhan said that the Modi government had replaced the old National Agricultural Insurance Scheme (NAIS) with PMFBY, which is directed to settle the claims of losses suffered by farmers within 21 days. He then highlighted a serious issue that surfaced in Andhra Pradesh.
The Agriculture Minister said, “Some states had announced that they would bear the cost of farmer insurance premiums themselves. But, the then Jagan government in Andhra Pradesh failed to deposit its state’s share in the premium for 3 consecutive years.” Due to this major lapse, the farmers of Andhra Pradesh had to bear heavy losses as they could not get their entitled benefits of crop insurance. This incident became a big lesson for the central government about how delays at the state level can prove disastrous for the farmers.
Now, states will have to pay 12% interest
Emphasizing the central government’s commitment to farmers, Shivraj Singh Chouhan said that fundamental amendments have been made in the Pradhan Mantri Fasal Bima Yojana due to this “bad experience”. These amendments will ensure that such situations do not recur in the future and farmers get their insurance benefits on time.
Center’s share now assured
Under the revised Pradhan Mantri Fasal Bima Yojana, the central government will now pay its share for crop insurance even if the state government completes or does not pay its premium contribution. This means that the Center will continue its share even if the state’s share of premiums is not paid, so that the insurance of farmers does not stop.
Provision of 12% interest on the state
The minister clarified, “If a state government does not pay its share, then 12% interest will be charged on it, and that amount will be deposited directly into the accounts of the farmers.” This is a historic change that will make state governments accountable for paying the premium on time.
Direct relief to farmers
This move of the government is aimed at saving farmers from the delays and political inaction of officials at the state level, so that they can get the benefits of crop insurance on time without any hindrance. This is a big relief for the farmers, as now they will not have to bear the brunt of any lapse on the part of the state governments.