Crop Insurance Scheme: Odisha Government Extends CIS for Kharif 2023 to Rabi 2025-26

According to officials, the Odisha Government has made a declaration to extend the Pradhan Mantri Fasal Bima Yojana (PMFBY) by commencing a new insurance cycle from the Kharif Season of 2023 to the Rabi Season of 2025-26.

The State Cooperation Department has stated that the coverage of farmers under the crop insurance scheme is approximately 10 lakh hectares, benefiting around 10 to 12 lakh farmers out of a total of about 50 lakh farmers with operational holdings, covering a total cropping area of 60 lakh hectares.

For the new insurance cycle, four insurance companies, namely the Agricultural Insurance Company of India Ltd, SBI General Insurance Company Ltd., Future Generali India Insurance Ltd., and Reliance GIC Ltd, have been selected through an e-tender process. The Pradhan Mantri Fasal Bima Yojana (PMFBY) aims to safeguard farmers against potential losses to their crops caused by weather uncertainties.

The crop insurance scheme offers protection to farmers by providing coverage for various aspects, including the final yield of their crops, losses resulting from prevented sowing, challenges faced during the mid-season, localized calamities, and damages occurring after the harvest.

Also Read:- Cotton Association of India Raises Cotton Output Estimate to 311.18 Lakh Bales for 2022-23

Farmers are usually required to contribute a premium of 2% of the Sum Insured (SI) for Kharif crops and 1.5% of SI for Rabi crops, except for commercial crops. For commercial crops, the premium is set at 5% of SI. The differential amount of premium is shared equally by the Government of India and the State Government as a subsidy.

To increase coverage and support more farmers, the Odisha Government has taken transformative decisions. From the current Kharif season onwards, the State Government will bear the farmers' share of the premium using its resources to ensure that small and marginal farmers do not miss out on the benefits of the scheme due to a lack of premium funds.

Also Read:- Telangana State Gears Up for Kharif 2023 with Enhanced Preparedness and Implementation of Central Schemes

This premium subsidy provided by the State Government is in addition to the regular State subsidy under the scheme. However, the benefit is limited to 2 hectares (about 5 acres) per farmer, to direct more resources towards supporting small and marginal farmers. In order to avail the benefits, farmers need to enroll in the scheme and a token amount of Rs 1.00 will be debited from their respective bank accounts to validate them. Farmers registering for more than 2 hectares will have to pay their share of the premium for the additional land beyond the limit set by the State Government.

The continuation of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the State Government's efforts to subsidize the premiums for small and marginal farmers will provide significant relief and support to the farming community in Odisha during the upcoming agricultural seasons.

Also Read:- Ministry of Defence and FSSAI Sign MoU to Promote Millets & Healthy Eating Practices in Armed Forces