India - Government Extends Crop Insurance Schemes to 2026

12.03.2025 705 views

The Indian government has approved the continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme (RWBCIS) until 2025-26, with a substantial budget allocation of ₹69,515.71 crore.

This decision aims to bolster support for farmers across the country, ensuring they have access to essential insurance coverage against crop losses.

Overview of the Insurance Schemes

Launched during the Kharif 2016 season, the PMFBY is designed to provide insurance coverage to farmers across all states and union territories (UTs) in India. Participation in the scheme is voluntary for both states and farmers, allowing them to opt-in based on their risk assessments and financial capabilities. Since its inception, 27 states and UTs have adopted the scheme in various seasons, with 23 currently implementing it. This widespread adoption underscores the importance of the program in safeguarding farmers’ livelihoods.

The operational framework of the PMFBY involves significant collaboration between state governments and insurance companies. Key responsibilities, such as selecting insurance models, enrolling farmers, and assessing crop yields for claims, are managed by state officials in conjunction with insurance providers. This structured approach aims to ensure that all stakeholders understand their roles, as outlined in the scheme’s Operational Guidelines.

Addressing Challenges and Grievances

While the PMFBY has been largely successful, it has faced challenges, including complaints regarding delayed or non-payment of claims. Issues have arisen from incorrect submissions by banks, discrepancies in yield data, and delays in state funding. The government has taken steps to address these concerns, ensuring that grievances are resolved in accordance with the scheme’s provisions.

To enhance the grievance redressal process, the government has established a Stratified Grievance Redressal Mechanism. This includes District Level Grievance Redressal Committees (DGRC) and State Level Grievance Redressal Committees (SGRC), which are tasked with addressing complaints from insured farmers. These committees operate under detailed mandates to ensure that grievances are handled efficiently and transparently.

Innovations in Grievance Redressal

In a bid to streamline the grievance resolution process further, the government has introduced the Krishi Rakshak Portal and Helpline (KRPH). This initiative features a toll-free number, 14447, linked to the insurance companies’ databases, allowing farmers to easily report issues. Specific timelines have been established for resolving these grievances, ensuring that farmers receive timely assistance.

The Department of Agriculture is actively monitoring the performance of insurance companies, focusing on the timely settlement of claims. Regular meetings, including weekly video conferences and national review conferences, are held to discuss progress and address any emerging issues. This proactive approach aims to maintain accountability and improve the overall effectiveness of the insurance schemes.

Future Enhancements and Revisions

Based on feedback from various stakeholders and lessons learned from past experiences, the government is committed to enhancing the PMFBY’s transparency and accountability. The Operational Guidelines have been periodically revised to ensure that eligible farmers receive their benefits promptly and transparently. These revisions reflect the government’s dedication to making the scheme more farmer-friendly and responsive to the needs of the agricultural community.

This information was shared by the Minister of State for Agriculture and Farmers’ Welfare, Shri Ramnath Thakur, in a written response in the Lok Sabha, highlighting the government’s ongoing commitment to supporting farmers through robust insurance mechanisms.

 

Source - https://observervoice.com

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