Badal seeks modifications in Pradhan Mantri Fasal Bima Yojna

Punjab Chief Minister Parkash Singh Badal today sought modifications in the recently launched Pradhan Mantri Fasal Bima Yojna (PMFBY) to make it more farmer-friendly and result oriented.
"The PMFBY falls short of the farmers' expectations," the Chief Minister said in separate letters to Prime Minister Narendra Modi and Union Agriculture Minister Radha Mohan Singh.
The scheme provides insurance cover and financial support to farmers in the event of failure of any of the notified crops as a result of natural calamities, pests and diseases.
"The scheme is a step forward as it has greatly improved insurance product as compared to earlier schemes, but still falls short of the farmers' expectations," he said, saying the situation in Punjab was totally different from rest of the country.

He said an indemnity level of 90 per cent for cereal crops would be completely "unsuitable" for Punjab.
The Chief Minister advocated higher level of indemnity for Punjab because of its special and different position in agriculture.

He said even if it was kept at 90 per cent, it should be based on last year's yield of the insured and affected farmers.
"Such a step will help cover more farmers on voluntary basis, minimising State's contribution in providing calamity relief which otherwise is likely to continue unabated" added Badal.
Dwelling on another issue, the Chief Minister said the scheme provides for insurance cover for losses suffered due to drought, but Punjab has never declared drought.

Badal said in case of drought like situation as a result of deficit rains, the cost of cultivation of farmer increases due to increase in cost of irrigation and labour but the new insurance scheme does not provide for compensation for such increases and situations.
"Further the scheme also does not provide for losses due to unseasonal rains in Rabi crops. I feel that such increased costs and losses should be covered," said Badal.
Post harvest losses covered in the scheme were for crops kept in "cut and spread" condition in the field whereas the harvesting of cereal crop in the state was fully mechanized and the crop was immediately taken to market but losses due to natural calamities during marketing in the mandis were not covered.

Such losses should also be covered if the crop remains unsold in the mandi at the peril of farmers.
He said given present the agrarian crisis and financial stress on farmers, insurance cover should be provided to them as a measure to save them from natural calamities and climate variability.
It may be appropriate to cap the farmers' contribution to the premium at Rs 100 an acre to begin with, and to share the balance cost of insurance in the ratio of 60:40 between Centre and State as done in most other schemes of agriculture development, said Badal.