11/08/2016

Bihar to implement PMFBY purely on trial basis: Minister

 


Patna,(BiharTimes): Softening the stand of the state government a bit Bihar’s cooperative minister Alok Mehta said that the state would implement Pradhan Mantri Fasal Bima Yojana “purely on a trial basis” for the current kharif crop.

Talking to the media on Wednesday he said that the results would be reviewed after the on-going kharif season is over.

Mehta said the state government would evaluate the scheme closely with relation to claims, compensation and the effect of diesel subsidy given to farmers for irrigation purposes during droughts.

The state government would also evaluate the reports and then decide on the scheme's implementation in the next cropping seasons, the minister said adding the evaluation of the scheme would also focus on how much money was spent by the state government and farmers on the premium, and how much they got as compensation.

Mehta said the scheme would be implemented on the rate of 14.92% average weighted premium fixed by insurance companies, which Bihar has been opposing on the plea that it was higher than many other states, including neighbouring Uttar Pradesh and Bengal.

UP's average weighted premium is 4.09%, Bengal 3.25%, Odisha 7.61% and Jharkhand 13.82% of the insured amount.

It needs to be recalled that till recently the Bihar government had been opposing the implementation of the Yojana citing the high financial burden that would accrue because of the premium which has to be shared equally with the Centre.

Chief minister Nitish Kumar had even suggested that it should be renamed "Pradhan Mantri-Mukhya Mantri Fasal Bima Yojana" because the Centre and states would be sharing an equal financial burden.

However, Mehta said it would have been better had the Centre addressed state’s grievances on the scheme, and pointed out that the decision to implement it was taken to honour the concept of cooperative federalism enshrined in the Constitution.

As per the guidelines of the Yojana, crop insurance is compulsory for farmers who have availed crop loans through Kisan Credit Cards. Participation of those who have not taken loans is optional.


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