Crop Insurance: Gujarat exits PMFBY, launches State-funded scheme for Kharif 2020

Gujarat is the most up-to-date State to exit the Pradhan Mantri Fasal Bima Yojana (PMFBY) – an bold crop insurance coverage scheme citing exorbitantly superior quality price to the State.

State Chief Minister Vijay Rupani on Monday released an alternate State-funded scheme – Mukhya Mantri Kisan Sahay Yojana masking all farmers under a crop insurance coverage for the present-day kharif period.

“Due to exorbitant price of quality, which will work out at about ₹4,500 crore as per the tenders, we have decided to cancel the tenders for PMFBY. Although it is a very good scheme for the farmers, and Gujarat has remained its section in the previous and will be so in foreseeable future way too, but for the present-day yr at minimum we are not going with PMFBY scheme looking at surplus burden on the State exchequer,” Rupani said through a media briefing on Monday.

Past yr, Reliance Standard Insurance coverage Corporation, Universal Sompo, Bharti Axa and Agriculture Insurance coverage Corporation of India were being appointed for unique clusters in the State.

Each individual yr tenders are floated for insurance coverage organizations to ask for premiums to supply crop insurance coverage coverage to farmers. This yr, the tenders floated by Gujarat govt noticed insurance coverage organizations asking ₹5,seven hundred crore in quality, Rupani said.

Nonetheless, he added that the State govt has rolled out a simplified crop insurance coverage scheme masking all the farmers in the State.

“We are announcing Mukhya Mantri Kisan Sahay Yojana for present-day year’s Kharif period. There will be zero quality payable by farmers. It will not require any registration from the farmers aspect. All climatic extremities will be regarded as which includes drought, floods or even destruction because of to unseasonal rains. Beneath the PMFBY, about fifteen-seventeen lakh farmers were being protected, whilst in the State’s scheme, all 56 lakh farmers will get automatically protected under the scheme,” he said.

For the kharif 2020 period, any farmer with a land ceiling of upto four hectares will be qualified to assert insurance coverage aid. The State will supply ₹20,000 per hectare aid for crop damages in the assortment of 33 per cent to 60 per cent, while ₹25,000 for damages in surplus to 60 per cent. The aid sum will be directly credited to the farmers’ accounts by means of immediate profit transfer (DBT).

“Mostly through the Kharif period, farmers have to bear the adversities of climatic uncertainty. Therefore, this scheme is applicable for only the crops sown through kharif period (i.e. sown till July),” Rupani added.

The State govt has laid down pointers to qualify for a assert. Any taluka receiving rains much less than 10 inches or 250 milimeters, will be pronounced as drought-hit and subsequently, farmers of the space will qualify for the claims. Equally, rainfall in surplus to twenty five inches inside of 48 hrs would mean surplus rains – floods as per the pointers. And any taluka getting rains of above fifty mm in 48 hrs through the unseasonal time