Odisha Government to Pay Farmers’ Premium under Revamped PMFBY
Odisha’s state government has fulfilled its commitment to providing free crop insurance by advising all farmers, including sharecroppers and tenants, to enroll in the Pradhan Mantri Fasal Bima Yojana (PMFBY) for the upcoming kharif-2023 crop season. The government resolution, in line with the revamped PMFBY guidelines, states that the state government will cover the farmers’ share of the premium for three years starting from this kharif season.
Under the previous system, farmers had to bear a premium of 2% of the sum insured (SI) for kharif crops and 1.5% for rabi crops. However, commercial crops attracted a higher premium of 5% of the SI. The differential amount of the actuarial premium was subsidized and shared equally by the Central and state governments.
In a bid to expand the coverage of farmers and cultivated areas under the insurance scheme, the state government has taken proactive steps to bear the cost of the farmers’ share of the premium from its own resources. This ensures that small and marginal farmers do not miss out on the benefits of the scheme. The premium subsidy offered by the state government is an additional subsidy beyond the normal state subsidy.
It is important to note that this benefit is limited to two hectares per farmer. This cap allows the state’s resources to be predominantly directed towards supporting small and marginal farmers. Farmers who register for more than two hectares will have to pay their share of the premium over the subsidized two hectares. A nominal amount of ‘1 will be debited from the farmers’ accounts during validation when they enroll under the scheme. The deadline for enrollment is July 31.
The revamped PMFBY ensures that the final yield of the farmer is insured, covering losses arising from prevented sowing, mid-season adversity, localized calamities, and post-harvest damages. The insurance companies responsible for implementing the scheme are selected through an open bidding process once every three years from the companies authorized by the Central government.
By undertaking this initiative, the Odisha government aims to alleviate the financial burden on farmers while increasing the reach and impact of the PMFBY. It is a commendable effort to ensure the welfare of farmers and protect their livelihoods in the face of unforeseen agricultural risks.
In conclusion, the Odisha government’s decision to pay farmers’ premiums under the revamped PMFBY is a significant step towards securing the future of the farming community. By shouldering the financial responsibility, the government has demonstrated its commitment to supporting small and marginal farmers and ensuring they can access the benefits of the crop insurance scheme. This proactive move will go a long way in safeguarding the agricultural sector and the livelihoods of farmers in the state.
