National Conference on Agriculture for Rabi Campaign 2019

National Conference on Agriculture for Rabi Campaign 2019 Credit Division, DAC&FW

Overview of PMFBY • Launched from Kharif 2016 – entered seventh season of implementation • Pan India Scheme – implemented by 27 States and UTs • Universal for all farmers - fixed premium rates per season to be paid by farmers • Increased outreach under PMFBY – reflected by increase in voluntary enrolment to 36% • Multi-stakeholder Scheme – Central Govt; 27 States and UT administration; 18 Insurance Companies; 1. 6 lakh bank branches, CSCs with VLEs across India • Revised Operational Guidelines issued on October 1, 2018 after feedback from all stakeholders: o provision of penalty on States and ICs for delay in claim settlement o Setting of technology fund to enable use of technology in CCEs and yield estimation o Grievance redressal committees to be setup at District and State level o Protection against wild animal attack now available as an add on product.

Achievements Insured Area Sum Insured Voluntary Coverage Insured Area increased from 22% to 30% of Gross Cropped Area (GCA) Voluntary coverage increased from 5% to 36% Technology Crop Combinations Sum Insured increased from Rs 1. 35 lakh crore to Rs 2. 34 lakh crore (larger risk coverage for same crop) Number of crop combinations notified increased from 80 to 200 Technological intervention in administration of the scheme – eg NCIP, CCE agri app, Crop Insurance app

Achievements • Total Farmer applications generated in three years of implementation of PMFBY is 16. 6 crore. • Partnership developed with CSC for additional window of enrolment for nonloanee farmers – 133 lakh farmer applications generated during 2018 -19 • National Crop Insurance Portal Launched – integration with different stakeholders like Banks, ICs, CSC, and access to individual farmer; Crop Insurance App launched • Scheme now administered through NCIP from Kharif 2017 • Dashboard reflecting status of Scheme in real time launched on NCIP • Distribution of acknowledgment receipts to insured farmers – 2. 88 crore acknowledgement receipts issued in more than 10 regional languages • Loss cost support provided to States – saving of Rs 500 crore • Implementation of Smart Sampling and Optimization of CCEs in 10 States (pilot)

Status of Implementation of PMFBY Season Kharif 2016 Rabi 2016 -17 Kharif 2017 Rabi 2017 -18 Kharif 2018* Rabi 2018 -19** 2018 -19 Number of Farmers Insured (In Lakhs) 405. 4 175. 1 580. 5 350. 2 175. 3 525. 6 341. 0 223. 4 564. 4 Total Sum Insured 131, 699 73, 046 204, 744 127, 931 78, 252 206, 183 136, 970 97, 993 234, 964 Total Farmers Total Gross Total Claim Share in Total No. of Farmers Premium Paid Premium against paid Claims (In Lakhs) (In Rs. Crore) 2, 909 1, 318 4, 227 2, 964 1, 466 4, 431 3, 195 1, 694 4, 889 16, 026 5, 983 22, 008 18, 993 6, 487 25, 481 20, 795 8, 240 29, 035 • *Kharif 2018 claims are currently under process • **Rabi 2018 -19 enrolment and claims statistics are provisional • 30% of Gross Cropped Area (GCA) insured • Voluntary coverage at 36% of total coverage 10, 548 6, 069 16, 617 17, 878 3, 827 21, 705 12, 715 1, 531 14, 246 107. 9 40. 6 148. 4 145. 7 25. 3 171. 0 104. 9 17. 6 122. 5

Kharif 2019 - Snapshot • Enrolment for seventh season of PMFBY, Kharif 2019 completed • Total enrolment data on portal for Kharif 2019 (till date) – 3. 21 crore (except MP & Assam) • Loanee farmers – 1. 64 crore • Non-loanee farmers – 1. 57 crore of which CSC Enrolment 1. 35 crore • Final figures for Kharif 2019 expected to be 3. 75 crore

Challenges in Crop Insurance and Proposed Solutions

CHALLENGES Large number of CCEs (70 lakh per year) within a short harvesting window Limited use of CCE app by States (<15% of total CCEs conducted) Manipulations during conduct of CCE - disclosure of CCEs experimental plots in advance/not sharing CCE Schedule with Insurance Company as per stipulated timelines Delay in approval of data on CCE App/sharing CCE yield data with Insurance Companies by State Government Crop Cutting Experiments PROPOSED SOLUTIONS Pilot for 2 -step process for assessment of yield based on preliminary weather-based indices followed by conduct of CCEs - By Rabi 2019 -20 Implementation of Smart Sampling and CCE Optimization in 96 districts of 10 rice growing States (AP, Assam, Telangana, Karnataka, Haryana, UP, Chhattisgarh, Jharkhand, Odisha and MP) - By Sep 2019 Pilot studies for Direct Yield Estimation of All Major Crops - By Oct 2019 Enhancement of National Crop Insurance Portal (NCIP) and Linking to Unified Farmer Database (consisting of digitized land records) - By Dec 2020 Auto approval of CCE yield data on CCE App/CCE co-observance App after cut-off date. In case of delay/deficiency in CCE data, usage of synthetic yield - By Kharif 2020

CHALLENGES State. Specific Issues Delay in sharing of subsidy by the states leading to delay in claims settlement to farmers Low investment by Insurance Companies in terms of accessibility and outreach due to short contract durations Repeated tendering process delays the overall implementation of crop insurance in States Around 40 districts account for half of the overall claims across the nation PROPOSED SOLUTIONS Deduction of overdue State Subsidy from Central Transfer to States - By Kharif 2020 Making multi-year tenders (minimum 3 years) mandatory for all States – By Kharif 2020 Offering basic crop insurance product with provision of add-on products to be decided by States Direct monitoring and increased engagement with identified “Focus Districts” - By Kharif 2020 CHALLENGES Product Design Compulsory enrolment of loanee farmers leads to dissent from farmers who do not wish to avail insurance or those who were enrolled without consent Inconsistency in yield data leads to high premium rates for some crops in certain districts PROPOSED SOLUTIONS Comments sought from States to make Scheme Voluntary for all farmers Migration of crops with inconsistent yield data to Weather-Based Insurance Scheme - By Kharif 2020

CHALLENGES Low penetration of the scheme in North Eastern region due to financial constraints as well as no provision of identifying individual beneficiaries within community owned lands North Eastern Region PROPOSED SOLUTIONS Restructuring the entitlement of individual beneficiaries of community owned lands in NER in line with PM-KISAN - By Kharif 2020 Restructuring the Subsidy Contribution between Centre and North Eastern States to 90: 10 - By Kharif 2020

Focal Areas for States • Grievance Redressal Committees - Already in place in 8 States (Haryana, Chhattisgarh, MH, Telangana, Goa, Assam, Meghalaya, Karnataka); other States yet to notify • Proposal for Changes in PMFBY shared with States - Comments received from 18 States (Meghalaya, Karnataka, AP, TN, HP, A&N Islands, Telangana, Rajasthan, Assam, Kerala, Haryana, Gujarat, Goa, Bihar, Uttarakhand, J&K, MH, Sikkim) • Evaluation of States and ICs as per Revised OGs: o Complete data for IC evaluation received from 16 States – AP, Assam, Goa, Gujarat, Haryana, HP, Jharkhand, Kerala, MH, Manipur, Odisha, Sikkim, TN, Telangana, Tripura, Uttarakhand o Complete data for State evaluation received from 6 States – Manipur, Rajasthan, Goa, Uttarakhand, Kerala, HP • State Technical Advisory Committees - To address disputes between different stakeholders at the State level • Social Mobilisation and Outreach - Proposal to setup State level monitoring committees for communication management

Focal Areas for States • Support from States for implementation of smart sampling and optimization of CCEs as well as for pilot studies on Direct Yield Estimation • Tender status for Rabi 2019 -20 – J&K and Manipur to issue tenders • 100% CCE Agri App usage by States – share CCE schedule with the ICs • Timely release of advanced subsidy for Kharif 2019 by States to release pending subsidy for Rabi-18 -19. MP, Telangana, Jharkhand , Rajasthan yet to release pending subsidy for Kharif-18. • States to invoke penalties for delay in claim settlement by ICs – letter already issued to States

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