The prime minister crop insurance scheme was launched in the year from Kharif crop of 2016. This insurance scheme is considered to be significantly more effective than the old crop insurance schemes. The reason is that farmers are being provided insurance for their crops at a much lower premium. The cutting edge technology is also being used under the scheme for better performance. The main purpose of this scheme is to provide benefits to farmers in a scheduled manner under the insurance scheme.
The positive side of the prime minister crop insurance scheme:
The Prime minister crop insurance scheme is very easy to process. Any farmer can take advantage of this facility by going to a nearby government bank.
The premium rate in the Prime crop insurance scheme has been substantially reduced. The premium rate for kharif crop is 2% and the premium rate for Rabi crop has been 1.5 per cent. Similarly, the premium rate for annual commercial crop and horticulture crop has been kept 5 percent.
The use of technology has been made compulsory in this insurance scheme. For example, the use of remote sensing, drones and smart phones etc. has been provisioned to quickly assess the loss of crops.
This is a demand-based plan so no target has been set. However has been provisioned to incorporate the region seeded total 50 per cent.
Proper funding has also been arranged for the prime ministerial crop insurance scheme by the government. The scheme will be funding from the Agricultural Welfare Fund. I.e the agricultural Welfare Fund has been constructed from funds which have been collected as an agricultural welfare cess.
This insurance scheme differs from the pre-enforced insurance plans as it provides for early assessment of the loss of crops and timely compensation to the farmers. The old schemes took much longer to complete the process.
This insurance scheme is available to all farmers but is not compulsory for anyone i.e. the farmer may opt out of the scheme with his will.
The prime minister crop insurance plan also covers the losses after cutting the crop (post harvest loss), while the previous prevailing insurance schemes did not cover the loss occurring after the crop truncating.
The scheme is providing its full support to the government. In addition to the premiums given by farmers, atrophy will be paid in equal amounts in tandem with premium central government and state governments.
The prime minister crop insurance scheme covers local threats such as landslides, hailstorm and floods etc. Whereas earlier plans had not included for floods etc.
Apprehensions to be expressed in respect of prime minister crop insurance scheme:
Although the Prime minister crop insurance scheme is quite simple, it is very difficult to go to the bank for uneducated farmers to get information about the scheme. Most of the mere 27 per cent of India's villages own 5 km. Bank in the realm of.
Most farmers have no information about this scheme. Thus, because of lack of awareness, farmers are ignorant of the benefits provided by this scheme.
Most farmers in India fall into small and marginal cultivate, so they have much lower ground. It is also difficult to pay a premium of 2 per cent for farmers with such a low ground.
This insurance scheme excludes crops from wild animal damage. I.e. Nilgai, Elephant and wild pig crops are majorly harmed.
Likewise, the practice of leaving animals open in the eastern north is prevalent. They seriously harm domestic animal crops and tree plants. Thus, the Prime crop insurance scheme has not included the loss of domestic animals.
The Prime minister crop insurance scheme also excludes the damage of crops arising from nuclear threats, riots, burglaries, etc.
The land record in India is in a very weak state and the problem of Corruption is very strong, so the success of the scheme will be necessary to resolve these problems. Most of the success of a plan depends on its effective implementation. The success of the scheme will also depend on the reasons mentioned above
The Prime Minister will have a much higher financial burden on the Government in implementing the crop insurance scheme as the premium rate has been kept low. The growing fiscal burden of the government will increase the fiscal deficit of the government, which would lead to a weakness in the economy.
Conclusions:
We conclude that may be asked whether the prime minister crop insurance scheme has made better provision relating to farmers ' interest. The scheme is quite beneficial for farmers. More awareness is needed to be disseminated regarding this scheme.
