"Some States Failed...": Minister Announces Changes To Crop Insurance Scheme

Union Agriculture Minister Shivraj Singh Chouhan has announced crucial modifications to the Pradhan Mantri Fasal Bima Yojana (PMFBY), citing the Centre's experience with the previous Jagan Reddy government in Andhra Pradesh. The changes aim to ensure that farmers are not denied crop insurance benefits due to the default of state governments.

Responding to a question from Rajasthan MP Hanuman Beniwal, Minister Chouhan detailed how the Modi government transformed the earlier National Agricultural Insurance Scheme (NAIS) into the PMFBY, with a mandate to settle farmer claims within 21 days. He then highlighted a critical issue that emerged in Andhra Pradesh.

"Some states had announced that they would bear the farmer insurance premium themselves. However, in Andhra Pradesh, the then Jagan government failed to contribute its state share towards the premium for three consecutive years," Mr Chouhan revealed. "Due to this, farmers in Andhra Pradesh suffered immensely as they were denied their rightful crop insurance."

Emphasising the Centre's commitment to farmers, Shivraj Singh stated that this "bad experience" had led to a fundamental policy modification.

Under the revised PMFBY, the Union Government will now pay its share for crop insurance irrespective of whether the state government fulfils its premium contribution.

To ensure accountability and prevent future lapses, the Union Minister announced a stringent penalty mechanism. "If a state government does not pay its share, it will be charged at 12% interest, and that amount will be directly credited to the farmers' accounts," Mr Chouhan affirmed. "The insurance would not be denied to farmers, and the state would be penalised."

This significant policy shift aims to safeguard farmers from bureaucratic delays and political inaction at the state level, ensuring timely and uninterrupted access to crucial crop insurance benefits.