Tamil Nadu Chief Minister Stalin urges Prime Minister Modi to remove capping of central share in PMFBY!
Posted on: 30/Jul/2021 1:11:19 PM
The Chief Minister of Tamil Nadu M. K. Stalin has urged Prime Minister Narendra Modi on 28th July (Thursday) to remove the capping of the central share of premium subsidy under the Pradhan Mantri Fasal Bima Yojana Scheme (PMFBY), which is a central government-sponsored Crop Insurance Scheme for the welfare of the farming community in the country.
A copy of the letter was written by the Tamil Nadu Chief Minister M K Stalin to the Prime Minister Narendra Modi was released to the media, it is mentioned that the Tamil Nadu Chief Minister had witnessed a huge growth in terms of areas insured and enrolment of farmers due to the best practices adopted by the State under the scheme. The TN CM further observed, “However, the State’s share of the premium the subsidy has increased at a compound premium growth rate of 28.7% in the last 5 years! As such, it has stymied the very purpose of the scheme as the state is finding it difficult to sustain the continuance of the scheme due to the increasing financial liability that too during the prevailing pandemic period!”
Initially, the pattern of sharing in 2016-17 was 499:49:2 (Central, State and farmer’s share respectively). The central share has now been capped at 25% for the irrigated area and 30% for the rain-fed area, thus increasing the state share of the premium subsidy by 12%! In all, the State’s share has now become 61%!
In terms of money, the State’s share of premium subsidy, which was Rs. 566 Crores in 2016-17, mounted by 239% to Rs. 1918 Crores daring 2020-21, after the capping of the central share of premium subsidy. This has now increased further to Rs. 2500 Crores during 2020-21 due to exorbitant actuarial premium rates (APR) quoted by the insurance companies empanelled by the Union Government. The Tamil Nadu Chief Minister said, “Thus, the financial implications on the state are causing a lot of concern!”
The Tamil Nadu Chief Minister further pointed out the state’s proposal to submit a separate budget for agriculture during this fiscal year for the first time in the state, with the vision to increase the area under cultivation, doubling the area cultivated more than once and achieving high productivity in food grains. The government also is bringing in a robust climate-resilient cropping system to prevent the farmers from incurring losses due to weather aberrations.
The Tamil Nadu Chief Minister shared further in this regard:
“As the state is already reeling under the severe financial crunch due to the COVID Pandemic, the onus of bearing a huge state share of the premium subsidy under PMFBY is UNAFFORDABLE! There is no doubt that the capping of the central share of the premium subsidy HAS BEEN A MAJOR DETRIMENTAL FACTOR for the implementation of the PMFBY, which has been introduced to ensure social security for the farmers!”
