{"id":34696,"date":"2025-01-02T18:45:28","date_gmt":"2025-01-02T13:15:28","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=34696"},"modified":"2025-01-02T18:45:29","modified_gmt":"2025-01-02T13:15:29","slug":"modifications-in-crop-insurance-scheme","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/02-01-2025\/modifications-in-crop-insurance-scheme","title":{"rendered":"Cabinet Approves Modifications in Crop Insurance Scheme"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Agriculture<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Union Cabinet has approved the <strong>continuation of Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme<\/strong> till 2025-26.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Cabinet approved setting up of the <strong>Fund for Innovation and Technology (FIAT)<\/strong> for technology improvements in insurance schemes.\n<ul class=\"wp-block-list\">\n<li>Key initiatives include Yield Estimation System using Technology (YES-TECH), which uses remote sensing for crop yield estimates.<\/li>\n\n\n\n<li>Weather Information and Network Data System (WINDS) for augmenting weather data through automatic weather stations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About Pradhan Mantri Fasal Bima Yojana<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Launch:<\/strong> In<strong> 2016 <\/strong>by the <strong>Ministry of Agriculture &amp; Farmers welfare.<\/strong><\/li>\n\n\n\n<li><strong>Objectives: <\/strong>It is a crop insurance scheme that provides financial support to farmers in case of crop failure or damage due to natural calamities, pests, or diseases.\n<ul class=\"wp-block-list\">\n<li>to stabilize the income of farmers to ensure their continuance in farming;<\/li>\n\n\n\n<li>to encourage farmers to adopt innovative and modern agricultural practices;<\/li>\n\n\n\n<li>to ensure flow of credit to the agriculture sector.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Coverage: <\/strong>All farmers including sharecroppers and tenant farmers growing the notified crops in the notified areas are eligible for coverage.<\/li>\n\n\n\n<li><strong>Coverage of Crops: <\/strong>Food crops (Cereals, Millets &amp; Pulses), Oilseeds and Annual Commercial \/ Horticultural crops.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"e0e0df\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"551\" height=\"276\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/01\/Coverage-of-Crops.webp\" alt=\"Coverage-of-Crops\" class=\"not-transparent wp-image-34697\" style=\"--dominant-color: #e0e0df; width:503px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/01\/Coverage-of-Crops.webp 551w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/01\/Coverage-of-Crops-300x150.webp 300w\" sizes=\"auto, (max-width: 551px) 100vw, 551px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Share between Centre and State: <\/strong>As the States have a major role in implementation of the scheme the premium subsidy is\u00a0 shared by the <strong>Central and State Government on a 50 : 50 basis <\/strong>and\u00a0 for <strong>North-Eastern States sharing pattern has been made 90 : 10.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About Restructured Weather Based Crop Insurance Scheme (RWBCIS)<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It was launched in <strong>2016<\/strong> to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss <strong>resulting from adverse weather conditions.\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li>While PMFBY is based on yield, RWBCIS uses <strong>weather parameters as \u201cproxy\u201f<\/strong> for crop yields in compensating the cultivators for deemed crop losses.<\/li>\n\n\n\n<li>All standard Claims are processed and paid within <strong>45 days from the end of the risk period<\/strong>.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Agri Credit in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Sources of Agricultural Credit: <\/strong>Public sector banks (like the State Bank of India), regional rural banks (RRBs), cooperatives, and NABARD (National Bank for Agriculture and Rural Development) provide most formal agricultural credit.<\/li>\n\n\n\n<li><strong>Types of Agricultural Credit:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Short-term Credit:<\/strong> Used for financing working capital needs like seeds, fertilizers, and pesticides.<\/li>\n\n\n\n<li><strong>Medium and Long-term Credit:<\/strong> Used for purchasing equipment, irrigation systems, and land development.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Challenges:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Low credit penetration in rural areas.<\/li>\n\n\n\n<li>Dependency on informal credit sources with high interest rates.<\/li>\n\n\n\n<li>Issues with loan recovery and defaults.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Other Relevant Government Schemes<\/strong><br>&#8211; <strong>Kisan Credit Card (KCC) Scheme:<\/strong> Provides short-term credit to farmers for crop production and agricultural needs. Offers flexible repayment terms.<br>&#8211; <strong>Pradhan Mantri Kisan Samman Nidhi (PM-KISAN):<\/strong> Direct income support of \u20b96,000 per year to small and marginal farmers in three installments.<br>&#8211; <strong>Interest Subvention Scheme: <\/strong>Subsidizes interest rates on crop loans up to \u20b93 lakh, reducing financial burden on farmers.<br>&#8211; <strong>Farmers&#8217; Development Loans (FDL)<\/strong>: Long-term loans for land development, irrigation, and purchasing farm equipment.<br>&#8211; <strong>Rashtriya Krishi Vikas Yojana (RKVY)<\/strong>: Provides funding to states for enhancing agricultural infrastructure and productivity.<br>&#8211; <strong>National Mission on Agricultural Extension and Technology (NMAET): <\/strong>Enhances agricultural productivity by supporting extension services and technology adoption.<br>&#8211; <strong>Credit Guarantee Fund Scheme (CGS): <\/strong>Offers credit guarantees to micro and small enterprises, including agri-businesses.<br>&#8211; <strong>Rural Infrastructure Development Fund (RIDF): <\/strong>Provides loans for rural infrastructure projects like irrigation and soil conservation.<br>&#8211; <strong>Kisan Rin Portal (KRP):\u00a0 <\/strong>This digital platform aims to <strong>revolutionize access to credit services under the Kisan Credit Card Scheme (KCC) by <\/strong>offering a <strong>comprehensive view<\/strong> of farmer data &amp; loan disbursement specifics and fostering seamless integration with banks.\u00a0<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/pib.gov.in\/PressReleseDetail.aspx?PRID=2089410&amp;reg=3&amp;lang=1\" target=\"_blank\" rel=\"noopener\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Union Cabinet has approved the continuation of Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme till 2025-26.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-34696","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/34696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=34696"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/34696\/revisions"}],"predecessor-version":[{"id":34698,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/34696\/revisions\/34698"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=34696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=34696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=34696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}