Bhubaneswar: Odisha government will bear the premium share of farmers under the crop insurance scheme out of its own resources from this Kharif season, a resolution issued by the state Cooperation Department said Thursday.
The decision to bear the farmers’ share of the crop insurance was taken so that small and marginal farmers would not be deprived of the benefits of the scheme for want of premium money.
Such a decision by the state government was taken in the interest of the farmers so that it would also increase the coverage of farmers and cultivated areas, official sources said.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) has been implemented in the State since Kharif-2016 to protect farmers against potential losses to their crops due to uncertainties in the weather.
Under this crop insurance scheme, the final yield of farmers is insured along with losses due to prevented sowing, mid-season adversity, localised calamities, and post-harvest damages.
The Odisha government has decided to continue with the Pradhan Mantri Fasal Bima Yojana (PMFBY) insurance cycle from Kharif 2023 to Rabi 2025–26.
The scheme is being implemented by insurance companies selected once every 3 years through an open bidding process from among the companies empanelled by the Government of India.
The farmers usually pay a premium of 2 percent of sum insured (SI) for Kharif crops, 1.5 percent of SI for Rabi crops, and 5 percent of SI for commercial crops.
The differential amount of premium is paid as a subsidy and shared equally by the Government of India and the State Government.
This year, a fresh insurance cycle (from Kharfi 2023 to Rabi 2022–26) has started, and the state government has decided to continue with the crop insurance scheme.
This premium subsidy extended by the state government is over and above the normal state subsidy under the scheme.
However, this benefit has been limited to 2 Hectares (about 5 Acres) per farmer, so the resources of the state are targeted more towards the support of small and marginal farmers.
Farmers will have to enroll under the scheme to avail the benefit and to validate the bank accounts, Rs 1.00 as a token will be debited from the concerned accounts of farmers.
UNI