Share of states in Crop Insurance Scheme

Pradhan Mantri Fasal Bima Yojana (PMFBY) is a voluntary Scheme.  The premium under the scheme is determined through biding however, farmers have to pay maximum 2% for Kharif, 1.5% for Rabi food and oilseed crops and 5% for commercial/horticultural crops and the balance of actuarial/bidded premium is shared by the Central and State Government on 50:50 basis and 90:10 in case of North Eastern States from Kharif 2020 season as per provisions of the scheme. The premium rate of crops depends on the risk associated with them and total liability of the State depends on actuarial/bidded premium rate, sum insured of crops, area insured and number of crops notified by the States. Some States have not released their share of premium subsidies for certain seasons, however, any specific reasons for such default have not been communicated.  Further, the sector-wise budget allocation  by the State Governments falls within their domain.

As the States have major role in implementation of the scheme the premium subsidy is  shared by the Central and State Government on 50 : 50 basis and  for North-Eastern States sharing pattern has been made 90 : 10 from Kharif 2020 season as per provisions of the scheme.

This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in Lok Sabha today.