Crop Insurance Current Affairs - 2020

Union Cabinet approves Revamping of PM Fasal Bima Yojana and RWBCIS schemes to address challenges

On February 19, 2020, the Union Cabinet approved revamping of challenges in insurance schemes such as Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS).

Highlights

The following changes are to be undertaken in the crop insurance schemes

  • The time period for an insurance company to work under the scheme is to be extended to 3 years
  • The Central subsidy has been limited to 30% for irrigated areas and 25% for irrigated areas
  • Two step processes are to be adopted for crop loss estimation
  • Technology solutions such as Smart Sampling Technique and Crop cutting are to be adopted under insurance
  • Enrolment of farmers under the scheme has been made voluntary

Benefits

With these steps, farmers will be able to cover and manage risks of agriculture production. It will also enable farmers of North Eastern Region to manage agricultural risk in a better way. The changes are to begin from the Kharif Season of 2020.

Pradhan Mantri Fasal Bima Yojana: 4th National Conference held in Udaipur

On February 17, 2020, the fourth National Conference of Pradhan Mantri Fasal Bima yojana was held in Udaipur, Rajasthan. The Conference was organized by Ministry of Agriculture and Farmers Welfare.

Highlights

The Conference was attended by more than 140 members. It included members from NABARD (National Bank of Agriculture and Rural Development), RBI (Reserve Bank of India), insurance companies, etc. Currently, the scheme has three active participants namely the state government, banking sector and the insurance sector. According to the experts at the conference, for the scheme to achieve success, active participation of all the three stakeholders is essential.

Pradhan Mantri Fasal Bima Yojana

The scheme was launched in 2016. It replaced the Modified National Agricultural Insurance Scheme and National Agricultural Insurance Scheme. Under the scheme the farmers are paid a premium of 2% for Kharif crops and 1.5% for Rabi crops in case of crop damages. The scheme is in line with One Nation-One Scheme theme.