Recently, the Finance Ministry expressed its concern and displeasure about the unsatisfactory progress of various schemes related to the farm sector.

More about the news: 

  • The Ministry has come down heavily over Public Sector Banks and asked them to double their efforts.
  • The displeasure of the Finance Ministry came before Prime Minister's visit to Chitrakoot, Uttar Pradesh.
  • The Ministry also expressed its concern over the slow implementation of Pradhan Mantri Fasal Bima Yojana. According to DAC&FW [Department Of Agriculture, Cooperation & Farmers Welfare], only  4.13 lakh applications have been sanctioned out of 9.33 lakh number of applications received by all banks.
  • PM will be launching the implementation of schemes that were announced in the Budget in Chitrakoot.
  • FM had announced in the budget 2020  that all eligible beneficiaries of PM-KISAN will be covered under the Kisan Credit Card (KCC) scheme. However, the Ministry is not satisfied with the progress of Public sector Banks in implementing these schemes.
  • Not equal coverage: There 9 crore PM-Kisan scheme beneficiaries, however, there are only 6.67 crores active KCC accounts. Hence, It is required to add 2.33 cr more PM-Kisan beneficiaries under Kisan Credit Scheme.
  • On-going campaign for saturation: There is an on-going campaign for saturation of all PM Kisan beneficiaries with KCC which started from February 10, 2020. the campaign will culminate at Chitrakoot (U.P.)

About KCC scheme: 

  • It was launched in 1998 with the objective of providing short-term credit to farmers for cultivation of crops, post-harvest expenses, working capital for maintenance of farm assets, among others.
  • This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of the R.V.GUPTA committee to provide term loans for agricultural needs.

About Pradhan Mantri Fasal Bima Yojana: 

  • It is a flagship crop insurance scheme launched by the government. It replaced the previous 2 crop insurance schemes: National Agricultural Insurance Scheme as well as the Modified NAIS.
  • It provides for a uniform premium to be paid by farmers at 2% for all Kharif crops, 5% for commercial and horticultural crops and 1.5% for rabi crops.
  • The government removed the capping against the claims of farmers. Now farmers will get a claim against full sum insured without any reduction.
  • It encourages the use of technology, such as Smartphones, to capture and upload data of crop cutting to reduce the delays in claim payment to farmers and Remote sensing to reduce the number of crops cutting experiments.

Recent changes in PMFBY: Recently Union cabinet approved the Restructured Weather Based Crop Insurance Scheme and the revamp of the Pradhan Mantri Fasal Bima Yojana (PMFBY).

  • Crop schemes made voluntary: crop insurance schemes made voluntary for farmers. Now, there is a choice to continue with the existing crop insurance scheme or to take new ones. Earlier Pradhan Mantri Fasal Bima Yojana was mandatory.
  • Until now, there was no upper limit for the central subsidy. 
  • Reduced share of center: center’s contribution is halved and has slashed its share of the premium subsidy from the current 50% to just 25% in irrigated areas and 30% for unirrigated areas from the Kharif season of 2020.

About PM-KISAN scheme:

  • The Scheme is effective from 1.12.2018. With a view to providing income support to all farmer’s families across the country, to enable them to take care of expenses related to agriculture and allied activities as well as domestic needs, the Central Government started a new Central Sector Scheme, namely, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN).
  • The scheme aims to provide a payment of Rs. 6000/- per year, in three 4-monthly installments of Rs. 2000/- to the farmers.
  • The entire responsibility of identification of beneficiary farmer families rests with the State / UT Governments.

Also readPradhan Mantri Matru Vandana Yojana (PMMVY)

Phase III Of Pradhan Mantri Gram Sadak Yojana (PMGSY)