33.9 mh of crops lost due to excess rains in 2015-21: WEF
- August 19, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
33.9 mh of crops lost due to excess rains in 2015-21: WEF
Sub: Schemes
Sec: Agri
Context:
- India lost 33.9 million hectares (mh) of crops due to excessive rains and an additional 35 mh due to drought between 2015 and 2021, a World Economic Forum (WEF) report has said.
- The impact of extreme climate events in India touches on nearly every aspect of its economy and society, but is more pronounced in particularly exposed sectors such as agriculture, which comprises 15 per cent of India’s GDP and employs around 40 per cent of its population — 70 per cent among its rural households
PM Fasal Bima Yojana (PMFBY):
- Launched in 2016, PMFBY is a large-scale crop subsidy insurance scheme that was aimed to safeguard farmers.
- PMFBY scheme was designed in line with the One Nation–One Scheme and replaces three older initiatives:
- Modified National Agricultural Insurance Scheme (MNAIS),
- Weather-based Crop Insurance Scheme and
- National Agricultural Insurance Scheme (NAIS).
- Key objectives: PMFBY operates under the ‘One Nation, One Crop, One Premium’motto and aims to achieve the following goals:
- Offer cost-effective and extensive insurance coverage for crops, guarding against failure, damage, and losses.
- Increase the reach of crop insurance, with a primary emphasis on covering the entire cultivated area.
- Maintain stable income for farmers while promoting sustainability in agricultural production.
- Facilitate access to credit for the agriculture sector.
- Encourage the adoption of innovative and modern farming practices among farmers.
- Foster competition within the agricultural industry.
- Shield farmers from risks associated with production.
- Provide farmers with exemptions from goods and services tax (GST).
- Implementing agency: Department of Agriculture, Cooperation and Farmers’ Welfare under the Ministry of Agriculture, along with empanelled general insurance companies.
Salient Features of the Pradhan Mantri Fasal Bima Yojana (PMFBY)
a. Insurance Coverage Under Pradhan Mantri Fasal Bima Yojana
- The Pradhan Mantri Fasal Bima Yojana offers insurance coverage specifically designed for certain crops and the risks associated with their yield.
- The list of crops covered includes essential food crops like cereals, millets, and pulses, as well as oilseeds, annual commercial crops, and annual horticultural crops.
- It also covers all stages of the crop production cycle. The inclusions and exclusions of insurance coverage provided are as follows:
- Initial Stage – Risks during sowing, planting, and germination: When unfavourable weather conditions, such as low rainfall or adverse weather, hinder successful sowing, planting, or germination, the insured area is protected.
- Growth Stage – Risks of crop failure during growth: Insurance coverage extends to yield losses caused by uncontrollable factors like drought, dry spells, floods, inundation, pest infestations, crop diseases, landslides, natural fires, lightning, hailstorms, and cyclones.
- Harvest Stage – Risks during post-harvest: This applies to crops that require drying in bundles after harvesting. Coverage is provided for up to two weeks from harvesting and extends to losses resulting from hailstorms, cyclones, cyclonic rains, and unseasonal rains.
- Protection against Calamities: Coverage is available for loss or damage to designated insured crops caused by specific localized risks, including hailstorms, landslides, cloud bursts, and natural fires.
- Exclusions: Loss or damage to the specified insured crops due to war, nuclear risks, malicious damage, and other avoidable risks are not covered under this scheme.
- The size of the insurance claim depends on the percentage of yield shortfall from the threshold yield, multiplied by the insured sum.
- The insured sum is determined based on the financial scale provided to farmers, while the threshold crop yield is calculated using seven-year historical data and indemnity levels.
b. Premiums Under Pradhan Mantri Fasal Bima Yojana
- To access the insurance benefits offered by this program, farmers need to contribute a small portion of actuarial premiums.
- The contribution rates differ based on the type of crops: for Kharif crops (2%), Rabi crops (1.5%), Commercial crops (5%), and Horticultural crops (5%).
- However, the bulk of the actuarial premium, ranging from 95% to 98.5%, is covered jointly by both the state and central governments, with the costs shared equally on a 1:1 ratio.
c. Beneficiaries of Pradhan Mantri Fasal Bima Yojana
- According to the government, under this scheme, all farmers (including sharecroppers and tenant farmers) growing notified crops in the notified areas are eligible for coverage, if they have insurable interest for the insured crops.
- The eligible farmers can be broadly classified into two categories in Pradhan Mantri Fasal Bima Yojana;
Categories | Description |
Loanee Farmers |
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Non-Loanee Farmers |
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Restructured Weather-based Crop Insurance Scheme (RWBCIS)
- Insurance protection for notified food crops, oilseeds and horticultural /commercial crops.
- Uniform maximum premium for all farmers like PMFBY:
- Kharif Season – 2% of sum insured.
- Rabi Season – 1.5% of sum insured.
- Commercial/horticultural crops – 5% of sum insured.
- The difference between the actual premium and the rate of Insurance payable by farmers shall be shared equally by the Centre and State.
- When the Weather indices (rainfall/temperature/relative humidity/wind speed etc) is different (less/higher) from the Guaranteed Weather Index of notified crops, the claim payment equal to deviation/shortfall is payable to all insured farmers of notified area.
- Provision for assessment of losses caused by hailstorms and cloud bursts at individual farm level.
Sandbox for Agricultural and Rural Security, Technology and Insurance (SARATHI):
- Launched by: Ministry of Agriculture and Farmers Welfare
- SARTHI is the comprehensive digital insurance platform launched in collaboration with United Nations Development Programme (UNDP) India.
- It extends coverage to health, life, home, shop, agriculture implements, motor, and parametric products.
- It can be accessed via the AIDE app available on Android App Store.
- This ambitious endeavour, aligned with the Sustainable Development Goals, not only aims to safeguard farmers’ livelihoods but also to fortify the resilience of the agricultural sector as a whole.
- Significance:
- It marks a significant advancement beyond traditional crop insurance, offering a diverse array of products tailored to farmers’ needs.
- By expanding insurance coverage to include vital assets like tractor machinery, SARTHI empowers farmers to comprehensively mitigate risks, securing their livelihoods and fostering long-term sustainability in agriculture.
Women’s Climate Shock Insurance and Livelihood Initiative (WCS):
- As extreme heat continues to rise, it disrupts livelihoods, economies, and health globally. Women, in particular, face disproportionate impacts, including health issues and income loss.
- WCS is a global initiative, launched in India, designed to provide financial protection to women against the devastating effects of extreme heat.
- The initiative, started in April 2024 by Climate Resilience for All in partnership with the Self-Employed Women’s Association (SEWA) and Swiss Re Public Sector Solutions, combines financial protections with interventions like early warning systems.
- Financial Protections:WCS includes a microinsurance parametric product and cash assistance:
- Microinsurance: Automatically pays out when temperatures exceed a pre-set threshold, helping women recover losses, protect their health, and ensure their families’ safety.
- Cash Assistance: Provides small, direct payments at lower temperature thresholds, supplementing lost income and empowering women with more decision-making power after a heat shock.
Additional Support: Alongside financial protections, WCS includes job-specific heat early warning systems and protective equipment, such as tarps for crops and cool boxes for meat and produce. These measures enhance women’s ability to survive and thrive during extreme heat conditions.