The Uttar Pradesh government has approved a subsidy of Rs 450 crore as part of the National Crop Insurance Programme (NCIP), a crucial protective measure for farmers facing crop damage due to inclement weather. A sum of Rs 247.39 crore has been released to pay premiums for insurance coverage to farmers against crop losses.
Directive and Utilization
As per a directive issued to the agricultural directorate on May 15, the sum will be spent according to guidelines set by the central and state governments. The directorate must utilize the amount within the financial year and submit a utilization certificate.
Background of NCIP
Introduced by the central government in 2013, the NCIP aims to protect farmers from financial losses due to crop failures caused by non-preventable natural risks such as droughts, floods, cyclones, hailstorms, pest attacks, and plant diseases. In 2016, the scheme was restructured and merged into India's upgraded flagship program, the Pradhan Mantri Fasal Bima Yojana (PMFBY).
Under the scheme, the government bears the majority of the insurance premium, making it highly affordable for farmers. The remaining actuarial premium cost is fully subsidized and shared between the central and state governments. Farmers pay a capped, minimal premium, while the balance is shared equally (50:50) by the central and state governments.
Premium Rates
For the Kharif season, farmers pay a 2% premium of the total sum insured for crops like paddy, black gram, and pearl millet. For the Rabi season, the premium is 1.5% for crops such as wheat, mustard, and potato. For commercial and horticultural crops, farmers pay a 5% premium of the total sum insured.
One Nation, One Crop, One Premium
The PMFBY follows the principle of 'One Nation, One Crop, One Premium', ensuring uniformity and fairness in premium rates across the country. Over the years, the scheme has enrolled over 56.8 crore farmer applications across India, with Uttar Pradesh consistently leading among states.
Sources indicate that annual farmer application enrollments in Uttar Pradesh range from 35 lakh to over 70 lakh applications, depending on the Kharif and Rabi seasons and weather forecasts.
