Question : Share of Crop Insurance Scheme

(a) whether it has come to the notice of the Ministry that many States are finding it extremely difficult to pay their share of crop insurance scheme and thereby defaulting and at times the share of States in crop insurance scheme is 50 per cent of their agriculture budget;
(b) whether the Ministry is also aware that there are States which have not paid the premium for 2018 and 2019;
(c) if so, whether there are any plans before the Ministry to take over the entire amount of premium; and
(d) if not, the reasons therefor?

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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(a) & (b): Pradhan Mantri Fasal Bima Yojana (PMFBY) is a voluntary Scheme for the State/UTs as well as for farmers. The premium under the scheme is determined through biding however, farmers have to pay maximum 2% for Kharif, 1.5% for Rabi food and oilseed crops and 5% for commercial/horticultural crops and the balance of actuarial/bidded premium is shared by the Central and State Government on 50 : 50 basis and 90 :10 in case of North Eastern States from Kharif 2020 season as per provisions of the scheme. The premium rate of crops depends on the risk associated with them and total liability of the State depends on actuarial/bidded premium rate, sum insured of crops, area insured and number of crops notified by the States. Some States have not released their share of premium subsidies for certain seasons, however, any specific reasons for such default have not been communicated. Further, the sector-wise budget allocation by the State Governments falls within their domain. State-wise details of premium subsidy pending from concerned States/UTs are annexed.

(c) & (d): As the States have major role in implementation of the scheme the premium subsidy is shared by the Central and State Government on 50 : 50 basis and for North-Eastern States sharing pattern has been made 90 : 10 from Kharif 2020 season as per provisions of the scheme.