 "Centre plans livestock insurance scheme on the lines of PM's Fasal Bima Yojana")
After the crop insurance scheme that promises record low premiums for farmers, the central government is planning to come out with a similar scheme for livestock in which farmers’ share of premium would also be in the range of 1-2 per cent per annum.
Officials said the matter was discussed at a high-level meeting which was also attended by representatives from insurance companies.
The new insurance scheme for livestock would provide protection to growers in case of livestock lost due to drought, floods, cyclones or any other natural calamities, including epidemics.
The premium has been proposed to be kept at 1-2 per cent per animal with the Centre and state government bearing the rest.
“Preliminary discussions have started on having a comprehensive insurance scheme to cover losses to livestock during calamities as well on the lines of the Pradhan Mantri Fasal Bima Yojana (PMFBY),” a senior official who participated in the meeting said.
PMFBY is one of the most ambitious pro-farmer measures of the Narendra Modi government. The maximum premium which the farmer has to pay under the scheme is a flat two per cent of sum insured for all kharif crops and 1.5 per cent for rabi crops.
For horticulture and cotton crops, the premium has been capped at five per cent. 25 per cent of the likely claim will be settled directly in the farmer’s accounts
The scheme is being implemented from the current kharif season and as many as 22 states have started the process of inviting tenders or notifying the same.
The Centre aims to bring 40 million farmers under the scheme. It has sought an additional Rs 11,000 crore to settle crop insurance claims this financial year under the scheme.
“This year's Budget allocation was Rs 5,500 crore for PMFBY. We have demanded the finance ministry provides an additional budget of Rs 11,000 crore for the new scheme,” the government official said.
More funds are being sought as the burden is expected to rise with the extension of the deadline to register under the crop insurance scheme and claims of about Rs 7,500 crore are pending from last year under the old scheme, National Agricultural Insurance Scheme (NAIS), he said.
The Centre had extended the deadline till August 10 for farmers to register under the new crop insurance scheme, and till August 31 for Bihar.
Last year, 30.7 million farmers had taken up crop insurance under the previous scheme. The new scheme replaces the existing two schemes NAIS and Modified NAIS, which had some inherent drawbacks.
Officials said the matter was discussed at a high-level meeting which was also attended by representatives from insurance companies.
The new insurance scheme for livestock would provide protection to growers in case of livestock lost due to drought, floods, cyclones or any other natural calamities, including epidemics.
The premium has been proposed to be kept at 1-2 per cent per animal with the Centre and state government bearing the rest.
“Preliminary discussions have started on having a comprehensive insurance scheme to cover losses to livestock during calamities as well on the lines of the Pradhan Mantri Fasal Bima Yojana (PMFBY),” a senior official who participated in the meeting said.
PMFBY is one of the most ambitious pro-farmer measures of the Narendra Modi government. The maximum premium which the farmer has to pay under the scheme is a flat two per cent of sum insured for all kharif crops and 1.5 per cent for rabi crops.
For horticulture and cotton crops, the premium has been capped at five per cent. 25 per cent of the likely claim will be settled directly in the farmer’s accounts
The scheme is being implemented from the current kharif season and as many as 22 states have started the process of inviting tenders or notifying the same.
The Centre aims to bring 40 million farmers under the scheme. It has sought an additional Rs 11,000 crore to settle crop insurance claims this financial year under the scheme.
“This year's Budget allocation was Rs 5,500 crore for PMFBY. We have demanded the finance ministry provides an additional budget of Rs 11,000 crore for the new scheme,” the government official said.
More funds are being sought as the burden is expected to rise with the extension of the deadline to register under the crop insurance scheme and claims of about Rs 7,500 crore are pending from last year under the old scheme, National Agricultural Insurance Scheme (NAIS), he said.
The Centre had extended the deadline till August 10 for farmers to register under the new crop insurance scheme, and till August 31 for Bihar.
Last year, 30.7 million farmers had taken up crop insurance under the previous scheme. The new scheme replaces the existing two schemes NAIS and Modified NAIS, which had some inherent drawbacks.