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LATEST NEWS UPDATES | Official data exposes Centre's inflated claims on success of agriculture insurance scheme -Jitendra

Official data exposes Centre's inflated claims on success of agriculture insurance scheme -Jitendra

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published Published on Dec 27, 2016   modified Modified on Dec 27, 2016
-Down to Earth

The number of non-loanee farmers opting for insurance reached 9.7 million in kharif season of 2016 as against 9.8 million in the same period in 2015   

On December 7, the Union Ministry of Agriculture press release claimed that that the Pradhan Mantri Fasal Bima Yojana (PMFBY) has made impressive progress in 2016. According to the press release, “There has been a quantum jump of more than six times in the coverage of non-loanee farmers, which shows that the scheme has been well received by the non-loanee segment.”

On contrary to the inflated claim of the Centre, the government data shows that the number of non-loanee farmers has in fact, reduced by one per cent. Interestingly, the number of insured loanee farmers has shot up by 28 per cent in comparison to 2015. But it must be noted that there is a compulsion for every loanee farmer to buy this insurance scheme and they are forced to pay premium. The premium amount is automatically deducted from their sanctioned loan amount.

The Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched in January 2016 to provide relief to farmers in case of crop loss or damage due to unseasonal rainfall, hailstorm, drought and other natural calamities. The annual budgetary allocation was Rs 5,500 crore instead of required amount of about Rs 19,000 crore.

According to the government-owned Agriculture Insurance Company India Limited (AICL), which is engaged in implementation and providing data to the government, the number of non-loanee farmers opting for insurance reached 9.7 million in kharif season of 2016, whereas it was 9.8 million in the same period in 2015.

Like previous schemes, PMFBY, too, has not been well received by non-loanee farmers. Only those who are engaged in horticulture, voluntarily opt for insurance scheme. It is an indication the insurance scheme has not been able to generate any interest among farmers.

The senior officers, who closely monitored the scheme, are in a fix as they can neither reject nor accept its own data.

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Down to Earth, 23 December, 2016, http://www.downtoearth.org.in/news/official-data-exposes-centre-s-inflated-claims-on-success-of-agriculture-insurance-scheme-56638


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