(a) whether the Government has launched Farm Income Insurance
Scheme (FIIS)
to provide income protection to the farmers;
(b) if so, the details thereof, State-wise and if not, the reasons
therefor; and
(c) the other steps taken/being taken by the Government to protect
the income of farmers?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) & (b): The Government had implemented a Pilot Project on the Farm
Income Insurance Scheme (FIIS) during Rabi (2003-04) season (in Assam, Bihar,
Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra,
Tamil Nadu, Uttar Pradesh, Uttarakhand) and Kharif (2004) season (in Gujarat,
Jharkhand, Maharashtra, West Bengal) in selected Districts / states for wheat
and paddy (Rabi) crops. The details of State-wise coverage of FIIS during
Rabi (2003-04) and Kharif (2004) are annexed. However, this Scheme was
discontinued with effect from Rabi 2004-05 season for the following reasons:
(i) Majority of States were not keen to implement the scheme as yield and
price has offsetting behavior.
(ii) The premium rates were substantially high despite the premium subsidy
given by the Government.
(iii) Some of the States were of the view that the guaranteed income was not
attractive since the market prices of the superior varieties grown never go
below MSP.
(iv) Since price and yield are negatively co-related, the probability of
claim arises only when price and yield both go below the guaranteed level.
(v) Non-availability of past as also current data at implementation level
was also a hindrance for smooth implementation of the scheme.
(c): The Government introduced National Agricultural Insurance Scheme (NAIS)
from Rabi (1999-2000) season to protect the farmers against losses suffered by
them due to crop failure on account of all non-preventable natural calamities
so as to restore the credit worthiness of loanee farmers. The scheme is
available to non-loanee farmers as well. The scheme, at present covers 73
different crops during the year which includes food crops cereals, millets
and pulses) and oilseeds etc. Another scheme, namely, Pilot Weather Based
Crop Insurance Scheme (WBCIS) aims to mitigate the hardship of the insured
farmers against the likelihood of financial loss on account of anticipated
crop loss resulting from incidence of adverse conditions of weather parameters
like rainfall, temperature, frost, humidity etc. is also under implementation.
While NAIS specifically indemnifies the cultivator against shortfall in crop
yield, WBCIS is built upon the fact that weather conditions affect crop
production even when a cultivator has taken all the care to ensure good
harvest.