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LATEST NEWS UPDATES | PM Fasal Bima Yojana not reaching farmers who really need it -Rajalakshmi Nirmal

PM Fasal Bima Yojana not reaching farmers who really need it -Rajalakshmi Nirmal

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published Published on Jan 16, 2017   modified Modified on Jan 16, 2017
-The Hindu Business Line

Non-loanee farmers availing insurance may be far fewer than data claim

Last January, Prime Minister Narendra Modi introduced a new crop insurance scheme with the aim of bringing 50 per cent of the country’s farmers under insurance cover in three years.

Data shows that in kharif 2016 — the first season after the scheme’s launch — crop insurance coverage had risen. However, despite the Centre’s claims, this growth is mainly due to the increase in insurance coverage of farmers who have taken crop loans (loanee farmers).

Sample this: data from the Agriculture Insurance Company (AIC), a State-owned insurer that has covered 40 per cent of all farmers under the new scheme, shows that in the 2016 kharif crop season, loanee farmers covered under crop insurance (Pradhan Mantri Fasal Bima Yojana and Weather-based Crop Insurance Scheme) stood at 2.69 crore (as of January 3, 2017). In the kharif season of 2015, the total loanee farmers under all crop insurance schemes was 2.10 crore. This 28 per cent growth in loanee farmers under crop insurance is courtesy the push from banks.

On the other hand, the number of non-loanee farmers (those who have not taken a crop loan) covered by insurance has increased only 3 per cent, to 1.01 crore, in kharif 2016 from 98.4 lakh the previous year.

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The Hindu Business Line, 15 January, 2017, http://www.thehindubusinessline.com/economy/agri-business/pm-fasal-bima-yojana-not-reaching-farmers-who-really-need-it/article9481604.ece?homepage=true


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