Meghalaya extends 100% subsidy in premium for crop insurance to farmers

Meghalaya extends 100% subsidy in premium for crop insurance to farmers

Shillong – Government of Meghalaya is extending premium support to the extent of 100 per cent towards the farmers of the state for both Kharif and Rabi seasons during 2023-24 under the crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY). The scheme has been made applicable to all farmers of the state growing the notified crops in the notified areas up to one acre per crop per farmer, Meghalaya’s Department Of Agriculture and Farmers’ Welfare announced today.

The vision of the state government is to take up a farmer-centric approach in devising a strategy to protect them from the risks of crop failure. In order to support the farmers of the state in stabilising their incomes against the risks of crop failure, the Meghalaya government has decided to provide free premium support amounting to Rs. 4.4 crores, covering both Kharif and Rabi seasons during 2023-24. With over 80 per cent of the population of the state dependent on agriculture, the assistance via premium provides the much-needed cushion to farmers in the case of crop failure.

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PMFBY, the Government of India’s flagship crop insurance scheme, was implemented in Meghalaya since its commencement with effect from Kharif 2016. The main objective of the scheme is to provide financial support to farmers suffering crop loss/damage due to unforeseen natural calamities and events. A farmer has to pay a 2 per cent premium for Kharif crops, 1.5 per cent for Rabi crops and a premium of 5 per cent for horticultural crops under this scheme. Farmers have to pay the premium out of the sum insured and the remaining premium is paid by the government on sharing basis between the Government of India and the state government at a 50:50 sharing basis. However, the sharing of the subsidy was made to a 90:10 basis w.e.f Kharif 2020, in the revamped PMFBY. The scheme is available to all farmers growing the notified crops in the notified areas including the sharecropper and tenant farmers. The scheme was made voluntary with effect from Kharif 2020 season.

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Efforts to popularise the scheme and ensure increased farmer enrolment is underway by the Department of Agriculture and Farmers’ Welfare in collaboration with the implementing agency, the Agriculture Insurance Company which is responsible to conduct awareness programmes from time to time as mandated by the scheme. The estimated amount of the premium support by the Meghalaya government is based on the enrolment target of 27,000 farmers for Kharif season 2023 and 10,000 farmers for the Rabi season 2023-24. The premium support guarantee by the state is expected to reverse the extremely low enrolled number of beneficiaries under the scheme so far in the state and will relieve a significant section of farming households in the state of the risks of crop damage or crop failure.

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