Fasal Bima Yojana: Farmers’ Share for Fresh Insurance Cycle to be Borne by State Govt

Bhubaneswar, July 13: The Crop Insurance Scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY) is being implemented in the State since Kharif-2016 to protect the farmers against potential losses to their crops due to uncertainties of weather. Under this crop insurance scheme, the final yield of farmer is insured along with losses due to prevented sowing, mid-season adversity, localised calamity and post-harvest damages.

The scheme is being implemented by insurance companies selected once in every 3 years through an open bidding process from amongst the companies empanelled by Government of India. Farmers usually pay premium @ 2% of Sum Insured (SI) for Kharif and 1.5% of SI for Rabi for all crops except commercial crops and @ 5% of SI for commercial crops for enrolment under the scheme. The differential amount of premium is paid as subsidy and shared by Government of India and State Government equally. 

This year, a fresh insurance cycle (from Kharfi-2023 to Rabi 2025-26) has started and the State Government have decided to continue with the above crop insurance scheme. Four insurance companies have been selected through e-tender, namely – Agricultural Insurance Company of India Ltd, SBI General Insurance Company Ltd., Future Generali India Insurance Ltd. and Reliance GIC Ltd for this cycle.

The coverage of farmers under the crop insurance scheme has been about 10 lakh hectares and about 10 to 12 lakh farmers, against the total cropping area of 60 lakh hectares and out of a total of about 50 lakh farmers having operational holdings. 

In order to increase the coverage of farmers and cultivated area, Government of Odisha have taken some transformative decisions in the interest of farmers of the State. The farmers’ share of premium under the crop insurance scheme will be borne by the State Government out of its own resources from this Kharif season, so that the small and marginal farmers are not deprived of the benefits of the scheme for want of premium money.

This premium subsidy extended by the State Government is over and above the normal share of State subsidy under the scheme. However, this benefit has been limited to 2 Hectares (about 5 Acres) per farmer so that the resources of the State are targeted more towards the support of small and marginal farmers.

Farmers will have to do enrollment under the scheme to avail the benefit, and to validate the bank accounts Rs 1.00 as token will be debited from the concerned accounts of farmers. Farmers doing registration for more than 2 hectares will have to pay their share of premium over and above 2 hectares . The Government in Cooperation department has issued a resolution to this effect.