Business News
Crop insurance scheme likely to get ₹ 13,000cr in FY19 budget
The government is likely to increase the budget allocation for the Pradhan Mantri Fasal Bima Yojana (PMFBY) to ₹ 13,000 crore for 2018-19 from ₹10,701 crore for the current financial year.
The Union Budget for 2018-19 will be presented on February 1.
Under the upgraded crop insurance scheme PMFBY that was launched early 2016, farmers pay very nominal premium and get full claim for damages.
Budget allocation for the PMFBY could go up to ₹ 13,000 crore for the next fiscal taking into account about 10 % likely increase in the sum insured.
While the Agriculture Ministry has demanded ₹ 11,000 crore budget for the next fiscal for the flagship scheme,the ministry is hopeful of getting more funds from the Finance Ministry
For the current fiscal, the government had initially given a budget of ₹9,000.75 crore for the PMFBY. However, the additional requirement of ₹ 1,701 crore was made through supplementary demands, taking the total allocation to ₹10,701 crore for the scheme, sources added.
Total crop insurance claim for 2016-17 crop year (July- June) is estimated to be ₹ 15,500 crore.Alraedy there are claims to the tune of ₹ 13,661 crore of which ₹ 12,313 crore have been settled.
As many as 5.70 crore farmers purchased the crop insurance policy PMFBY during 2016-17 crop year.
Under the PMFBY, farmers’ premium has been kept lower between 1.5-2 % for foodgrains and oilseed crops, and up to 5 % for horticultural and cotton crops.
There is no cap on the premium and 25 % of the likely claim will be settled directly in farmers’ accounts.
