\New Crop Insurance Scheme from current Rabi

The Crop Insurance Scheme has changed its approach, now requiring farmers to contribute their share of the insurance premium starting this Rabi season. This marks a shift from the previously implemented free crop insurance model. Despite the State government’s earlier announcement that the free crop insurance scheme would continue for the current season, the Agriculture Department has issued a notification regarding the various crops covered under the crop insurance scheme and payable premium details as well as the deadline for it.
The deadline for premium payment concluded on November 15 for commercial crops. Farmers must pay their premiums by December 15 for black gram, groundnut, green gram, and other crops. The premium payment deadline for Rabi paddy is December 31. However, the deadline for the commercial crop insurance premium payment was ended before the government’s announcement, i.e. on November 15.
The State government is implementing the Pradhan Mantri Fasal Bhima Yojana (PMFBY) and the Rabi Weather-Based Crop Insurance Scheme (RWBCIS) starting this season. According to Agriculture and Horticulture Minister K. Atchannaidu, the new crop insurance scheme will take effect from the next Kharif season. While the free crop insurance scheme will remain in force for the Rabi season, the department has begun collecting premium amounts from farmers this season.
Under the new crop insurance scheme, the premium collected will be 1.50 per cent from farmers for food grains and oilseeds, while it will be five per cent for commercial crops based on the total sum insured. The remaining premium will be covered by the State and Central governments. The government also announced that crop insurance will be available for mangoes starting this year.
The last date for commercial crops, such as cashew nuts, was November 15. The payment deadline for farmers’ contributions to crop insurance for black gram, green gram, maize, groundnut, and others is December 15, while it is December 31 for paddy. Meanwhile, the government is going to implement the crop insurance scheme not only for farmers who took crop loans from the banks, but also for those who did not take the loans.
Interestingly, the premium contributions required from farmers differ between the PMFBY and RWBCIS. Farmers cultivating paddy, black gram, groundnut, green gram, and other crops must pay 1.50 per cent of the premium based on the respective crop sum insured to avail themselves of the crop insurance scheme under PMFBY. However, under the RWBCIS, the farmers’ premium contribution for these crops is only 0.20 per cent of the sum insured. There are differences in the payment of premiums for both PMFBY and RWBCIS.
Based on the sum insured, the government is collecting premiums from the farmers to implement the crop insurance scheme. The State government ensured the paddy, maize and other crops- Rs.41,000 to Rs.42,000, maize-Rs.42,000, black gram, and green gram – 20,000 per acre. However, the sum insured for the jowar is Rs.19,000 and Bengal gram is Rs.38,000 per acre.
However, P Jamalaiah, general secretary, Andhra Pradesh Koulu Rythula Sangam (Tenant Farmers) Association, told The Pioneer the government should implement a uniform premiums payment system for all crops in the State. Paddy farmers in the Krishna district are to pay their contribution for the crop insurance is Rs.84 per acre. However, it is Rs.126 in the NTR district, Rs.500 in Eluru, and Rs.630 in Srikakulam and Vizianagarm districts. So, the government should rectify the difference in the premium to be paid by the farmers in various districts, he added.