CM URGES MODI TO CONSIDER SOME MODIFICATIONS IN THE NEWLY LAUNCHED CROP INSURANCE SCHEME TO MAKE IT FAR MORE FARMER FRIENDLY

Chandigarh : Punjab Chief Minister Mr. Parkash Singh Badal today urged the Prime Minister Mr. Narendra Modi to consider number of modifications in the recently launched Pradhan Mantri Fasal Bima Yojna (PMFBY) to make it far more farmer friendly and result oriented. In separate letters to Mr. Modi and Union Agriculture Minister Mr. Radha Mohan Singh, the Chief Minister, while expressing satisaction over newly launched scheme to provide insurance cover and financial support to the farmers in the event of failure of any of the notified crops as a result of natural calamities, pests and diseases, mentioned that the new scheme was a step forward adding that it has greatly improved insurance product as compared to earlier schemes, but still falls short of the farmers’ expectations. He said that the situation in Punjab was totally different than rest of the country. He said that 98% of cultivated area in Punjab was under assured irrigation and the state has faced natural calamities but tried to save and manage its crops with huge investments and costs. Mr. Badal said that the state has never notified a calamity year in the past 15 years.Further, the Chief Minister said that variation in yield of major crops since 2000-01 has been less than 5% in case of Paddy, no decline in Wheat and Maize and up to 23% in case of Cotton. He said that as such an indemnity level of 90% for cereal crops would be completely unsuitable for Punjab. Mr. Badal said that furthermore variation in yield would be worked out on the basis of four crop cutting experiments in the notified villages and in situations where only a part of the village was affected, variation was unlikely to be anywhere close to threshold limit as it would be further restricted and based on average yield of last seven years excluding two years of declared calamity, if any.The Chief Minister advocated higher level of indemnity for Punjab because of its special and different position in Agriculture. He said that even if it was kept at 90%, it should be based on last year’s yield of the insured and affected farmers. “Such a step will help to cover more farmers on voluntary basis, minimizing State’s contribution in providing calamity relief which otherwise is likely to continue unabated” added Mr. Badal. Dwelling on another issue, the Chief Minister said that the Scheme provides for insurance cover for losses suffered due to drought but, in Punjab, the state has never declared drought. Rather, he said that Punjabi farmers and the state Government face and manage it by pumping in individual and State resources, without allowing the crops to die and farmers to suffer. Mr. Badal said that in case of drought like situation as a result of deficit rains, the cost of cultivation of farmer increases due to increase in cost of irrigation and labor etc. but the new insurance scheme does not provide for compensation for such increases and situations.