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MONDAY • AUGUST 9, 2021 CHENNAI ₹10 • Pages 12 • Volume 28 • Number 220 Bengaluru Chennai Coimbatore Hubballi Hyderabad Kochi Kolkata Madurai Malappuram Mangaluru Mumbai Noida Thiruvananthapuram Tiruchirapalli Tirupati Vijayawada Visakhapatnam Regd. TN/ARD/14/2012-2014, RNI No. 55320/94 CM YK ................ CHENNAI BusinessLine J2 NEWS MONDAY • AUGUST 9 • 2021 Are farmers reaping the benefit of PM Fasal Bima Yojana? GM soyameal import Poor on-ground infrastructure, format paying premiums to submit ting insurance claims, farmers may be on the cards and execution keep small farmers have to struggle a lot. The ma out of the crop insurance network jority of the time, even COMMENTARY Public Distribution, Mr Piyush helpline numbers of the com Goyal, for appropriate action. It is panies are not working,” said G. CHANDRASHEKHAR also learnt that at a meeting on RADHESHYAM JADHAV companies and the govern Prashant Pawar, an August 5, the Minister of State for August 8 ment have a different take on agrientrepreneur. Is the government getting ready Commerce informed a group of The Pradhan Mantri Fasal the scheme and its impact. to take a call on import of feed poultry industry representatives Bima Yojana (PMFBY) The PMFBY is available for all Why the long wait? material from a genetically mod that a letter from the Environ launched in 201617 is globally States and farmers whether Farmer leader and former MP ified (GM) source? Recent inter ment Minister was expected to be the largest crop insurance loanee, nonloanee, share Raju Shetti said that farmers ministry communication points received soon. Clearly, Environ scheme in terms of farmer cropper, or tenant farmers have not been receiving insur to strong indication that a de ment Ministry comes into the participation and the third on a voluntary basis. The ance claims for years and they cision is likely to be made soon picture only in case of GM import largest in terms of the States notify the crops and have to turn to private money on import of soyabean meal for and not otherwise. premium according to the areas under the scheme. One lenders to recover losses and meeting the current feed short So, the soyabean meal import Central government. Over 5.5 of the main aims of the make provisions for the next age in the country. scene is now sizzling. Hectic ne crore farmer applications are scheme is to provide financial cropping season. The Poultry Breeders Associ gotiations are going on between received on a yearonyear support to stabilise the in The outstanding amount is ation has made a strong pitch for trading houses in exporting basis, and till date, the scheme come of farmers, especially in higher in Telangana followed allowing immediate import of 15 countries and Indian importers. has insured over 29.16 crore natural calamity hit seasons/ by Jharkhand, Gujarat , lakh tonnes of soyabean meal to In the US, soymeal is available at farmer applications. Over the years to ensure their continu Karnataka and Madhya Pra meet the shortage of the raw ma around $550 a tonne, while do period of five years, more than ance in agriculture. desh. Among these five States, terial (soybean) in the country. mestic prices in India are more 8.3 crore farmer applications Telangana, Karnataka and On July 31, Mr. Parshottam than twice the rate. There is have benefited from the Key numbers Madhya Pradesh are the re Rupala, Minister in the clear import parity. scheme. From 201617 to 201920 (provi gions which have witnessed newly created Min A major chunk of smaller sional figures) 2,307.4 lakh the highest number of farmer istry of Fisheries, An Feed shortage farmers, however, still remain farmers’ applications have suicides between 2014 2018. imal Husbandry and Soyabean meal is a out of the crop insurance net been insured under the Maharashtra, which has re Dairying forwarded key feed material for work. The percentage of mar PMFBY. Out of these applica ported highest farmer sui a representation fish, shrimp, cattle, ginal farmers in the scheme tions, 772.1 lakh applications – cides (12,813) during this from the Poultry dairy and poultry has seen a decline from 18.08 that is 33.46 per cent of applic period, has outstanding insur Breeders Association to farmers. Shortage in per cent to 16.55 per cent for ations – have benefited from ance claims pending from Mr. Bhupender Yadav, feed availability has resul kharif between 2018 and 2020. the scheme, according to the 2018. Union Minister of Environment, ted in a surge in soymeal prices The participation of small data presented by the Ministry According to the Agricul Forest and Climate Change. In his that is hurting livestock farmers, farmers in the scheme is of Agriculture to the Lok ture Ministry, as per provi covering letter to the Environ the industry has claimed. between 6368 per cent. Sabha on July 27, 2021. sions of PMFBY, admissible ment Minister Yadav, Minister The next crop of soyabean will While the C entral govern Farmers have to pay a max 23, 2021, that all the five public period. Out of the total gross ance is a major risk mitigation claims are generally paid by Rupala has requested for appro be harvested midSeptember on ment wants to expand the imum 2 per cent premium for sector general insurance com premium of ₹1,07,449 crore tool for the benefit of farmers. the insurance companies priate action in the matter. This wards. Questions are now being scheme, farmers seem to be kharif, 1.5 per cent for rabi panies and 14 private sector collected by the companies in The Ministry added that the within two months of comple communication should be seen raised about the correctness of a unhappy with its current food and oilseed crops, and 5 general insurance companies four years (201617 to 201920) difference between premium tion of crop cutting experi in context. record 134 lakh tonnes soybean format and execution . per cent for commercial/horti have been empanelled by the about ₹92,426 crore – that is collected and claims paid may ments/ harvesting period – Import of any GM material is production estimate for 202021 Farmers in Maharashtra cultural crops. The balance of government of India for im 86 per cent – has been paid to not be the margin/profit for subject to availability of yield governed by the Environment released by the Ministry of Agri have intensified their agita actuarial/bidded premium is plementation of PMFBY in the farmers to settle insurance the insurance companies. data, subject to receipt of the Protection Act 1985. GM import culture on May 25. Supply tight tion against insurance com shared by the Central and country. However, the specific claims. “The cost of reinsurance and total State share of premium proposals are examined by Ge ness and escalating market panies implementing PMFBY, State government on 50:50 implementing insurance com The data reveals that some administrative cost totalling subsidy from the concerned netic Engineering Appraisal prices suggest the government’s alleging that the insurance basis (in the case of northeast pany is selected by the private insurance com 10 per cent to 12 per cent of State government within time. Committee (GEAC) under the En output estimate is divorced from firms are hand in glove with ern States, it is 90:10). In the concerned State panies have opted out gross premium also has to be “However, settlement of vironment Ministry for making a market reality. the government and that a four years (201617 to 201920), through a transpar of the scheme. In borne by the insurance com claims in some States get recommendation to either ac In recent years, India has been majority of the farmers are be farmers across the States have ent bidding 201920, four com panies. Further, out of the delayed due to reasons like cept or reject the proposal. Al importing roughly 5 lakh tonnes ing deprived of the benefits of paid ₹17,573 crore as their process. panies didn’t parti total crop insurance business delayed transmission of yield though GEAC is supposed to of oilmeals and about 3 lakh the scheme. Many farmers share of the premium that The Ministry has cipate in the under the scheme, about 50 data; late release of their share meet every month, its meetings tonnes of oilseeds from nonGM here are still waiting for the comes to 16 per cent of the provided the data scheme while Shri per cent is shared by the five in premium subsidy by some have been rather irregular. In re origins. Also, for the last 15 years, insurance amount for the crop gross premium of ₹1,07,449 on claims paid by 18 ram General Insur public sector insurance com States, yieldrelated disputes cent years, only two or three India has been consuming cot damaged in 2018. It is not just crore. These figures include insurance companies. ance Company Ltd was panies including Agriculture between insurance companies meetings a year have been held. tonseed meal processed out of the farmers in Maharashtra provisional figures for 201920 Agriculture Insurance part of the scheme only in Insurance Company of India and States, nonreceipt of ac The last meeting was held in June GM cottonseed variety, popularly who are up against PMFBY and which the government is Company of India Limited has 201617. Industry players com Ltd.” the Ministry informed. count details of some farmers this year. It is unclear if the GEAC called Bt Cotton, with no adverse implementing companies. updating. paid the highest claims of plain that PMFBY is not bene However, farmers disagree for transfer of claims to the would meet in August to con effects scientifically recorded.