We recently spoke with V. Dakshinamoorthy, the Director of Agriculture, about the Pradhan Mantri Fasal Bima Yojana (PMFBY) being implemented across Tamil Nadu.
He explained, “Since 2016, the Pradhan Mantri Fasal Bima Yojana has been operational in all districts of Tamil Nadu, except Chennai. This scheme offers several benefits beyond the National Agricultural Insurance Scheme, including swift compensation for crop losses due to natural calamities.
The scheme covers various risks such as failed sowing, inability to plant, post-harvest losses, and damages caused by cyclones, hailstorms, landslides, unseasonal rains, and waterlogging in fields.
Insurance Unit and Coverage
To accurately assess and compensate for crop losses, revenue villages have been selected as insurance units for major crops like paddy, maize, black gram, green gram, groundnut, cotton, and sugarcane. The scheme covers all food grains, oilseeds, sugarcane, cotton, and horticultural crops.
Insurance Amount and Premium
Both borrowing and non-borrowing farmers are eligible for the same insurance amount, which is determined based on the cost of cultivation. For Kharif crops, the premium is 2%, and for Rabi crops, it is 5%. For annual commercial and horticultural crops, the premium is also 5%.
Key Features of the Scheme
The scheme has a uniform enrollment period for both borrowing and non-borrowing farmers. Revenue villages with more than 20 hectares under cultivation are selected based on the crop season. Key crops like paddy, maize, pulses, sugarcane, cotton, and groundnut are insured in specific revenue villages, while other crops like ragi, sorghum, pearl millet, black gram, sesame, and sunflower are insured in designated circles.
The insurance period is determined based on the crop type, and 50% of the total cultivated area in the notified regions is insured.
Eligibility for Enrollment
All farmers cultivating notified crops in notified areas are eligible for insurance, including those who borrow or do not borrow loans, as well as tenant farmers. Borrowers are automatically enrolled, while non-borrowers can voluntarily join the scheme by submitting a proposal form, registration application, account statement, and Aadhar card copy at a common service center or primary agricultural cooperative bank.
Assessment and Disbursement of Compensation
Crop loss is calculated based on crop-cutting experiments, with 4 experiments conducted in each revenue village and 8 in each circle. Over 200,000 crop-cutting experiments are conducted across Tamil Nadu to assess losses. Insurance companies are required to disburse compensation within 21 days of receiving the yield data.
Efforts by the Agriculture Department
To ensure maximum farmer participation, awareness camps are conducted at the village level, involving field workers. Publicity boards are placed at Agricultural Extension Centers, and pamphlets are distributed to farmers. Additionally, assistance centers at the offices of the Assistant Director of Agriculture at the district and block levels provide guidance on scheme registration. Awareness is also raised through media and television.
Achievements
In 2016-2017, 1.576 million farmers registered under the scheme, insuring 3.247 million acres of crops. Tamil Nadu ranked first nationwide in enrolling non-borrowing farmers, with 79% of the registered farmers being non-borrowers. The state government contributed ₹565 crores as premium subsidy.
So far, compensation amounting to ₹3,527 crores has been approved for 1,208,254 farmers, with ₹3,387 crores disbursed to 1,179,642 farmers. Among these, ₹3,363 crores have been credited to the bank accounts of 1,165,536 farmers. Tamil Nadu led the nation in providing compensation to farmers in 2016-17 compared to other states.
The Indian Council for Research on International Economic Relations (ICRIER) praised Tamil Nadu for efficiently implementing the scheme, stating that the state had set an example for others by promptly providing yield data and premium subsidies to insurance companies.
In 2017-2018, 2.76 million acres of crops were insured, with 77% of the 1.398 million registered farmers being non-borrowers. The state contributed ₹638 crores as premium subsidy to insurance companies. So far, ₹1,108 crores have been approved as compensation for 550,691 farmers, with ₹901 crores disbursed to 445,404 farmers, and ₹429 crores credited to the bank accounts of 221,902 farmers.
In 2018-2019, 2.95 million acres of Kharif and Rabi crops were insured, with 79% of the 1.937 million registered farmers being non-borrowers. The number of registered farmers in 2018-2019 has increased significantly compared to the previous three years. The state has allocated ₹632 crores as premium subsidy for Rabi crops.
Uzhavan App
Farmers can also use the Uzhavan app, launched to provide essential information to farmers, to check their registration details and insurance status,” he concluded.
M. Umapathi
