While States such as Gujarat, Telangana and Andhra Pradesh are pulling out of the revamped crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY), Tamil Nadu is sticking with it and going ahead with the process of choosing insurance companies.
The Agriculture Department has called for e-bids that can be submitted till the noon of September 2. Bids will be opened the same day, if there is no extension of the deadline, and it may take a few days for completing other formalities, including the issue of work order to the selected companies, explains an official of the Department. Once selected, the insurance companies will be involved in enrolment of farmers for three years, till the end of the 2022-23 ‘rabi’ cultivation season that covers ‘samba’ and ‘navarai’ in Tamil Nadu.
One of the main reasons for the State government to continue with the scheme is the high coverage of farmers with the payment of compensation in times of crop loss. During the first three years of the scheme (2016-17 to 2018-19), 70% of the farmers enrolled were compensated for crop loss. Totally, in the last four years, 49.6 lakh farmers were paid around ₹8,934 crore in compensation. During the same period, 80.7 lakh farmers was enrolled, with about 138 lakh acres covered.
Another official points out that in the inaugural year of the scheme, 2016-17, the State had faced its worst drought in the last 140-odd years.
Among the factors that have contributed to the success of the scheme in Tamil Nadu are the “timely payment” of premium subsidy by the State government to the insurance companies; “prompt” execution of crop-cutting experiments; and furnishing of yield data.
The “burden” of premium subsidy to be paid by the State government is less, compared with those States that have withdrawn from the scheme. For 2019-20, the Tamil Nadu government paid ₹739 crore towards its share of the subsidy. It may have to pay a maximum of ₹100 crore more.
Another significant feature of the implementation of the scheme in the State is the presence of a substantial number of non-loanee farmers, accounting for 75% of those enrolled every year. It is this factor that will ensure that the changes in the stipulations, especially voluntary enrolment, will have no impact on the State. Till last year, all those who took crop loans were required to insure their crops. But, in Tamil Nadu, from the beginning of the scheme, even those who did not take crop loans had taken insurance cover for their crops.
During the 2020 ‘kharif’ cultivation season, which covers ‘kuruvai’ in Tamil Nadu, 82% of those enrolled belong to the category of non-loanee farmers. The area insured and the number of farmers enrolled have increased this year by 50% and 38%, compared with the past, the official adds.
