Claims for crop losses are assessed on the basis of Crop Cutting Experiments (CCE). The operational guidelines of PMFBY require the state governments to carry out at least four CCEs in every village panchayat and for every crop
At present, the scheme is compulsory in nature.
With his own government under attack over agrarian distress in several states, including Karnataka, Modi sought to assuage the concerns of the farming community.
Under the upgraded crop insurance scheme PMFBY, launched early 2016, farmers pay very nominal premium and get full claim for the crop damage.
Union Agriculture Minister Radha Mohan Singh blamed the "policies of the previous governments" for farmers' suicides in the country
Accordingly, the Pradhan Mantri Fasal Bima Yojana (PMFBY) replaces the existing two schemes, the National Agricultural Insurance Scheme (NAIS) and the Modified National Agricultural Insurance Scheme (MNAIS).
This comes after National Crime Records Bureau registered 5,650 farmer suicides in 2014, more than half from Maharashtra, due to unseasonal monsoon and two consecutive years of drought.
S Sivakumar, Divisional Chief Executive, Agri Business at ITC, expects fertilizer subsidy outlay to come down due to lower commodity prices.
"At the ground level, PMFBY and the Guidelines will make no difference to the farmer-as is prevalent now, the insurance premium will be deducted without the farmers' knowledge, consent and information and when there is crop loss, the same yield based assessment arbitrarily decided by patwaris will apply," Abhiyan added.
Noting that the new crop insurance policy is a step in the right direction but needs improvements, Centre for Science and Environment (CSE) said that insurance unit is still not at individual farmer level which is a major problem in compensating losses of the individual farmers.
Besides low premium, there will be a mechanism in place to ensure that crop insurance claims are settled early, says Agriculture Minister Radha Mohan Singh
A bench, comprising Chief Justice Sanjay Kishan Kaul and Justice T S Sivagnanam, directed Assistant Solicitor General Su. Srinivasan to file an affidavit stating when the central government expected the consultative process of providing relevant scheme for crop insurance would gets it finality as it was going on for the last three years.
Of the total premium fixed by the insurers under the existing crop insurance schemes NAIS and MNAIS, farmers are presently paying a premium of up to 3.5 percent and 8 percent, respectively, and the rest is borne by the government.