The NDA-Government on Wednesday unveiled a Rs 7750 crore crop insurance scheme to alleviate rural miseries. The scheme was approved at the meeting of the Union Cabinet on Wednesday morning.
Addressing media-persons in New Delhi, Union Home Minister Rajnath Singh said, “The Cabinet today approved Pradhan Mantri Fasal Beema Yojna, a crop insurance scheme aimed to ensure farmers’ welfare.” Union Parliamentary Affairs Minister M Venkaiah Naidu, Agriculture Minister Radha Mohan Singh and Agriculture Secretary Siraj Hussain were also present at the briefing.
Describing the Cabinet decision as “historic” Rajnath Singh said, “The scheme will offer more insurance with less premium, and lead to rise of purchasing capacity of farmers. He termed cabinet’s decision on crop insurance scheme as historic.”
The new scheme replaces the existing National Agricultural Insurance Scheme. Naidu elaborating on the scheme said that: “farmer’s share of premium has been substantially reduced and government will provide subsidy on premium. The government liability on premium subsidy will be shared by central and state governments on fifty-fifty basis.”
Narendra Modi government has faced flak for being anti-farmer on account of pushing land acquisition ordinances and curtailing spending under schemes like MNREGA. Social activists earlier this week had written to Finance Minister Arun Jaitley requesting him to accord “highest priority” to the Mahatma Gandhi National Rural Employee Guarantee Scheme (MGNREGA). The activists have also urged the Minister to allocate additional Rs 5,000 crore to the Rural Development Ministry on an urgent basis.
To counter criticism, Prime Minister Narendra Modi soon after the cabinet meeting wrote on micro-blogging site twitter, “Farmer brothers and sisters, at a time when you are celebrating festivals like Lohri, Pongal and Bihu, the government has given you a gift in the form of Prime Minister’s Crop Insurance Scheme.”
BJP president Amit Shah welcomed the scheme saying, “It is a complete pro-farmer scheme, which will end up reducing their burden.”
Agriculture Minister Radha Mohan Singh said “there will be a uniform premium of two per cent to be paid by farmers for all Kharif crops and 1.5 per cent for all Rabi crops.” The budget for Crop Insurance will be substantially increased from Rs 2823 crore in 2015-16 to Rs 7750 crore in 2018-19.
Remote sensing, smart phones and drones will be used for quick estimation of crop losses and early settlement of claims. The scheme will ensure that farmers will get their full sum insured.
Highlighting the key points of the scheme, the Agriculture Minister said, “There will be a uniform premium of only 2% to be paid by farmers for all Kharif crops and 1.5% for all Rabi crops. In case of annual commercial and horticultural crops, the premium to be paid by farmers will be only 5%.