Modi government to release ₹3,200cr payout to aid 30L farmers
What's the story
The Indian government has announced the release of ₹3,200 crore as part of the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme. The move is expected to benefit nearly 30 lakh farmers who have been affected by natural disasters. Union Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan made the announcement on Monday, stating that this is just the first installment of a total amount of ₹8,000 crore that will be disbursed later.
Penalty clause
Insurance companies to incur penalty if they delay payment
Chouhan also announced a penalty clause for insurance companies failing to deposit the amount on time. These companies will have to pay a 12% interest penalty, which will be directly credited to the farmers' accounts. "Today, approximately 30 lakh farmers affected by natural disasters will have ₹3,200 crore deposited into their accounts under the Pradhan Mantri Fasal Bima Yojana," Chouhan said in his post on X.
Scheme benefits
Crop insurance protects farmers from natural calamities
The PMFBY scheme, which was launched in 2016, provides comprehensive coverage against crop losses due to unpredictable natural disasters. This not only stabilizes farmers' income but also encourages them to adopt innovative practices. "Crop insurance is an important risk mitigation tool to protect farmers from natural calamities," the official statement from the Ministry of Agriculture and Farmers Welfare stated.
Coverage expansion
PMFBY coverage increased to 55% in 2023-24
The Union Cabinet had approved the continuation of PMFBY and the Restructured Weather Based Crop Insurance Scheme till 2025-26 with a total budget of ₹69,515.71 crore. Even though the scheme is voluntary for farmers, non-loanee farmers' coverage has increased to 55% of the total coverage under the scheme during 2023-24. This shows its voluntary acceptability and popularity among farmers across India.