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Challenges and Concerns Surrounding Crop Insurance under Pradhana Mantri Fasal Bima Yojana in State

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The initiation of crop insurance procedures through the Pradhana Mantri Fasal Bima Yojana in the state is anticipated to begin shortly, with the deadline for insurance payout drawing near. Farmers are voicing apprehension about the delay, especially with the forecast of heavy rains during the upcoming Kharif season. They report significant losses resulting from the previous month’s rain and floods, which led to the destruction of newly transplanted crops and inundated nurseries.

Under the scheme’s guidelines, both the state government and farmers contribute 25% of the premium, while the remaining amount is covered by the central government. Initially, the YSRC government collected a nominal fee of 1 from each farmer in the first year, later shouldering the farmers’ portion and providing free farm insurance. However, challenges arose last year when the YSRC government established an insurance company that was not acknowledged by the central government, preventing farmers from claiming insurance benefits.

T. Gopalakrishna, the state convener of the Bharatiya Agro and Economic Research Centre, emphasized that as per regulations, the state government should solicit bids from insurance firms on a district-wise basis post the completion of the E-crop record process. Claims are contingent on the crop type, and the deadline for Kharif season insurance payouts extends until the end of August. Gopalakrishna expressed concerns over the absence of tender invitations for insurance services so far, noting the farmers’ unease about potential crop damage due to anticipated heavy rains and floods in the forthcoming months.

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