NEW DELHI, Jan 1: The central government has announced the extension of two crop insurance programs—PMFBY and RWBCIS—for an additional year, now running until 2025-26. Furthermore, a dedicated fund of Rs 824.77 crore has been established for technological advancements in these flagship initiatives.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS) have been extended to correspond with the timeline of the 15th Finance Commission.
This decision was made during a Cabinet Committee on Economic Affairs (CCEA) meeting overseen by Prime Minister Narendra Modi.
“These schemes have garnered favorable responses from farmers, leading to an increased allocation for both PMFBY and RWBCIS,” said Information and Broadcasting Minister Ashwini Vaishnaw during a press briefing.
When asked about ongoing farmer protests in Punjab and the government’s challenges in addressing their concerns, Vaishnaw commented, “If you had observed the responses of farmers during the Haryana elections, you would have understood their views on the ongoing agitation versus genuine welfare for farmers.”
The total funding for PMFBY and RWBCI has been raised to Rs 69,515.71 crore for the period from 2021-22 to 2025-26, up from Rs 66,550 crore allocated for 2020-21 to 2024-25.
In relation to the targeted technological advancement in crop insurance scheme implementation, the Cabinet has approved the establishment of a separate Fund for Innovation and Technology (FIAT) with an allocation of Rs 824.77 crore.
This fund aims to leverage technology for quicker crop damage assessment, efficient claim settlements, and reduced disputes. It will also facilitate the use of digital tools for streamlined enrollment and enhanced coverage, Vaishnaw noted.
The agriculture ministry stated that this fund will be used to finance technological initiatives under the scheme, such as YES-TECH and WINDS, along with supporting related research and development efforts.
The Yield Estimation System using Technology (YES-TECH) employs remote sensing technology for yield estimation with a minimum of 30 percent reliance on technology-driven yield evaluations.
Currently, nine major states, including Andhra Pradesh, Assam, Haryana, and Uttar Pradesh, are implementing these systems, with ongoing efforts to onboard additional states.
The broader use of YES-TECH will gradually phase out Crop Cutting Experiments and associated issues. Under YES-TECH, claims for the 2023-24 cycle have already been calculated and settled, with Madhya Pradesh fully adopting technology-based yield assessments.
The Weather Information and Network Data Systems (WINDS) plan includes the installation of Automatic Weather Stations (AWS) at the block level and Automatic Rain Gauges (ARGs) at the panchayat level.
WINDS aims to increase the current network density fivefold to create hyper-local weather data.
This initiative only requires the central and state governments to cover data rental expenses. Nine key states are currently working on implementing WINDS, including Kerala, Uttar Pradesh, Himachal Pradesh, and Puducherry, with other states also showing intent to join the program.
Implementation of WINDS was delayed in 2023-24 due to various preparatory and planning tasks necessary before proceeding with tenders. As a result, the Union Cabinet has designated 2024-25 as the inaugural year for WINDS instead of 2023-24, benefiting state governments with a higher central funding share in a 90:10 ratio.
The ministry emphasized ongoing efforts to prioritize coverage for farmers in northeastern states, with the central government providing 90 percent of the premium subsidy to these regions.
However, since participation in the scheme is voluntary and the gross cropped area in northeastern states is low, flexibility has been offered to prevent the forfeiture of funds, allowing for reallocation to other development projects as necessary.
With regards to the number of policies issued, PMFBY remains India’s largest agricultural insurance program and is third for overall premiums, with implementation across approximately 23 states and Union territories.
PMFBY and RWBCIS provide financial support to farmers facing crop losses or damages due to various unforeseen circumstances. While PMFBY addresses yield risk, RWBCIS focuses on risks related to weather events. (Agencies)
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