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LATEST NEWS UPDATES | State govts to blame for issues in crop insurance scheme: Agriculture ministry -Sayantan Bera

State govts to blame for issues in crop insurance scheme: Agriculture ministry -Sayantan Bera

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published Published on Feb 23, 2018   modified Modified on Feb 23, 2018
-Livemint.com

Centre is soon going to issue a revised set of guidelines to address current challenges faced by the crop insurance scheme, says Ashish Bhutani, joint secretary at the agriculture ministry

New Delhi:
The prime minister’s flagship crop insurance scheme, which has seen an impressive rise in coverage and sum assured since its launch in 2016, is facing a number of challenges that are delaying claim settlements for farmers, a senior agriculture ministry official said on Wednesday.

The Pradhan Mantri Fasal Bima Yojana (PMFBY) has seen a substantial rise in coverage and sum assured despite 2016-17 being a normal monsoon year but after nearly four seasons of implementation, several challenges have cropped up, Ashish Bhutani, joint secretary at the agriculture ministry, told a national conference on agriculture insurance organized by industry lobby Ficci.

“The biggest challenge we face is the conduct of crop cutting experiments which many states are unable to do in a short window of time,” Bhutani said. Companies have also objected to possible fudging in crop cutting experiments (used to estimate losses), “so we have put in the provision of companies co-observing these experiments,” he added.

“There are gaps in many states in implementing the guidelines of the scheme in letter and spirit... and those have led to payment delays (to farmers) in certain states,” Bhutani said.

He said a lack of historical data has hiked up premiums in some areas, and states are not doing enough to provide data to companies. “Another issue which is a challenge for us is the delay in release of subsidies (towards premium) by state governments which is delaying payment of claims to farmers,” Bhutani said.

Bhutani, who is steering the flagship scheme at the centre, also said the ministry is ready with a new portal which will ensure transparency and end-to-end implementation of the scheme from communication between states and companies to claim settlement. “The government is soon going to issue a revised set of guidelines to address current challenges and we are also thinking of setting up a dispute resolution mechanism to resolve conflicts between state governments and companies,” he said.

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Livemint.com, 22 February, 2018, http://www.livemint.com/Politics/bhfrlrH4uh4WKzvK22AqbM/State-govts-to-blame-for-issues-in-crop-insurance-scheme-Ag.html


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