Revision of Funding Pattern under PMFBY: Unstarred Question in Loksabha

Revision of Funding Pattern under PMFBY

(a) whether the Government is considering to revise the funding pattern of Pradhan Mantri Fasal Bima Yojana (PMFBY) to 60:40 between the centre and the States like other centrally sponsored scheme, if so, the details thereof;
(b) whether it is a fact that necessary steps need to be taken by the Government for provision of contingent funds under the PMFBY for smooth implementation of the programme, if so, the details thereof;
(c) whether the Government is considering to allow greater operational flexibility to States; and
(d) if so, the details thereof and the steps taken by the Government for capacity building of State official and Bank officials on use of Crop Insurance Portal?

GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE

LOK SABHA

UNSTARRED QUESTION NO: 1143                                        ANSWERED ON: 24.07.2018

Revision of Funding Pattern under PMFBY

Pratyusha Rajeshwari Singh

Will the Minister of AGRICULTURE AND FARMERS WELFARE be pleased to state:-

(a) whether the Government is considering to revise the funding pattern of Pradhan Mantri Fasal Bima Yojana (PMFBY) to 60:40 between the centre and the States like other centrally sponsored scheme, if so, the details thereof;
(b) whether it is a fact that necessary steps need to be taken by the Government for provision of contingent funds under the PMFBY for smooth implementation of the programme, if so, the details thereof;
(c) whether the Government is considering to allow greater operational flexibility to States; and
(d) if so, the details thereof and the steps taken by the Government for capacity building of State official and Bank officials on use of Crop Insurance Portal?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE
( SHRI PARSHOTTAM RUPALA) 

(a) to (d): No Madam, there is no such proposal under consideration for revising the funding pattern in Pradhan Mantri Fasal Bima Yojana (PMFBY) to 60 : 40 between Centre and States. Under PMFBY the States are required to equally share the premium subsidy with the Central Government keeping in view the significant stake of the States in securing the interest of their farmers.

The scheme is a complex scheme and other than demand for share of premium subsidy, Regarding capacity building on use of crop insurance portal this Department continuously imparts training both at State headquarters and district level to all the funds could be required by the Government, both Centre and State for implementation of other aspects of the scheme such as for better technology adoption. Presently there is no provision for contingency fund under the scheme but any such eventualities may be taken care of through revised budget estimates by the Government. 

Contd…2/-

-2-

Keeping in view the stake of the States in the successful implementation of the scheme, the States that opt for the scheme have been given maximum operational flexibility, viz. in deciding the crops/areas to be covered and the indemnity levels, cut-off dates within the broad seasonality discipline etc. The States provide past/ present yield data for determination of actuarial premium rates and claim amounts. State Governments also prepare clusters of their districts through appropriate risk classification for minimization/ rationalization of actuarial premium and selection of implementing insurance companies, whether public or private, through transparent bidding process based on the lowest premium rates (L-1) quoted by them. They also conduct Crop Cutting Experiments (CCEs) and furnish CCE data for calculation of claims etc. Overall responsibility for scheme implementation and monitoring are vested in State Level Coordination Committee on Crop Insurance (SLCCCI) and District Level Monitoring Committee (DLMC). 

Regarding capacity building on use of crop insurance portal this Department continuously imparts training both at State headquarters and district level to all the stakeholders including officials of State Governments, financial institutions and insurance companies.

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Source: Loksabha

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