Ministry of Agriculture & Farmers Welfare: Government Schemes | Indian Economy for UPSC CSE PDF Download

PM Fasal Bima Yojana

• Providing financial support to farmers suffering crop loss/damage arising out of unforeseen events.
• Stabilizing the income of farmers to ensure their continuance in farming.
• Encouraging farmers to adopt innovative and modern agricultural practices.
• Ensuring credit worthiness of the farmers, crop diversification and enhancing growth and competitiveness of agriculture sector besides protecting the farmers from production risks.

2. Intended beneficiaries

1. All farmers including sharecroppers and tenant farmers growing notified crops in a notified area during the season who have insurable interest in the crop are eligible.
2. Initially, it was compulsory for loanee farmers. However, now it has been made voluntary for all farmers, including loanee farmers.

3. Salient Features

1. It is a Centrally Sponsored Scheme, and it replaced the National Agricultural Insurance Scheme (NAIS) and Modified NAIS. The Restructured Weather-Based Crop Insurance Scheme (RWBCIS) is still continued.
2. Coverage of crops: Food crops (Cereals, Millets and Pulses); Oilseeds; Annual Commercial/ Annual Horticultural crops; Pilots for coverage can be taken for those perennial horticultural/commercial crops for which standard methodology for yield estimation is available

4. Area Approach Basis: 
This principal assumes that all the farmers in a notified area i.e. ‘Insurance Unit (IU)’ face similar risks for a notified crop. The IU is notified by the State/UTs and is Village/Village Panchayat for major crops and or above Village/Village Panchayat for other crops

5. Central Subsidy: Initially the contribution of state and Centre was shared on 50:50 bases. However, it was restructured in 2020. And now the Central contribution is up to: o 30% for unirrigated areas/crops o 25% for irrigated areas/crops (districts having 50% or more irrigated area will be considered as irrigated area/district for both PMFBY/RWBCIS) o 90% for North Eastern States 

6. Insured sum of crops: States/UTs can either choose scale of finance or district level value of notional average yield at MSP. Farm gate price will be considered for the other crops for which MSP is not declared. 

7. Special efforts shall be made to ensure maximum coverage of Scheduled Caste (SC)/ Scheduled Tribe (ST)/ Women farmers under the Scheme. 

8. Allocation of business to Insurance Companies to be done for 3 years. Earlier the tenders floated by the States varied from 1 to 3 years periods. States not to be allowed to implement the Scheme in subsequent Seasons in case of considerable delay by States in release of requisite Premium Subsidy to concerned Insurance Companies beyond a prescribed time limit. (Cut-off dates for Kharif and Rabi seasons will be 31st March and 30th September). 

9. Provision of Penalties/ Incentives for States, Insurance Companies (ICs) and Banks for delay in settlement claims prescribed cut off date. 

10. States have been allowed to set up their own insurance companies for implementing the scheme. Mandatory capturing of Aadhaar number.

e-NAM

• The new features will strengthen agriculture marketing by reducing farmers’ need to physically go to wholesale mandis for selling their harvested produce.
• It is an important move at a time when there is a critical need to decongest mandis to effectively fight against Covid-19.

Key Points

• Integration of Negotiable Warehouse Receipt System (e-NWRs) Module with e-NAM
  • Under it, a warehouse trading module with payment feature is launched.
  • It will enable small and marginal farmers to directly trade their stored produce from selected Warehousing Development and Regulatory Authority (WDRA) registered warehouses which are declared deemed market by the State.
  • Farmers will be able to place their produce in WDRA accredited warehouses.
    • Telangana (14 warehouses) and Andhra Pradesh (23 warehouses) have already declared designated warehouses as deemed markets.
  • Benefits:
    • Depositor can save the logistics expenses and will have better income.
    • Farmers can sell the produce across the Nation at better price without the hassle of going to mandi.
    • Farmers with their produce in WDRA accredited warehouses can avail the benefit of pledge loan, if required.
    • Price stabilization by matching supply and demand through time and place utility.
• FPO trading Module
  • It will enable Farmer Producers’ Organisations (FPOs) to upload the picture of their produce and quality parameters from their premise/collection centres for bidding.
  • Distant bidders can visualise the produce before bidding by seeing the pictures and quality.
  • After successful bidding, FPOs can deliver the produce from their premises or by bringing it to mandi.
  • Benefits:
    • This will decongest mandis and also reduce the hassle.
    • This will help FPOs by reducing logistics costs and enhance their bargaining power.
    • Facilitates FPOs to avail online payment facility with ease of doing business.
• Launch of Logistic Module
  • A provision has been made for linking large logistic aggregator platforms providing choices to users.
  • Presently, e-NAM provides a database of individual transporters to the traders.
  • Traders will be able to use the link to navigate to the logistics provider’s website and select appropriate services.
  • With these additions, more than 3,75,000 number of trucks from large logistic providers would be added for logistic purpose.
  • Benefits:
    • This will help in seamless transportation of agri-produce.
    • This will promote inter-state trade by providing online transport facilities for distant buyers.
• e-NAM
  • It was launched on 14th April 2016 as a pan-India electronic trade portal linking Agricultural Produce Market Committees (APMCs) across the States.
  • It provides for contactless remote bidding and mobile-based anytime payment for which traders do not need to either visit mandis or banks for the same.
  • Already 585 mandis in 16 States and 2 Union Territories have been integrated on e-NAM portal and will be soon expanded to cover additional 415 mandis, which will take the total number of e-NAM mandis to 1,000.

Negotiable Warehouse Receipt System

• It was launched in 2011 but the Ministry of Consumer Affairs, Food & Public Distribution.
• Farmers can seek loans from banks against the warehouse receipts issued to them against their storage.
• These receipts issued by the warehouses registered with the WDRA would become a fully negotiable instrument backed by a Central legislation.
• The Electronic Negotiable Warehouse Receipt (e-NWR) System was launched in 2017.

PMKSY

• The government also approved the Accelerated Irrigation Benefit Programme (AIBP), Har Khet ko Pani (HKKP), and watershed development components of the PMKSY for four years to 2025-26.

Key Points

• About:
  • It is a Centrally Sponsored Scheme (Core Scheme) launched in 2015. Centre- States will be 75:25 per cent. In the case of the north-eastern region and hilly states, it will be 90:10.
    • It will benefit about 22 lakh farmers, including 2.5 lakh scheduled caste and two lakh scheduled tribe farmers.
  • In 2020, the Ministry of Jal Shakti launched a mobile application for Geo-Tagging of the components of projects under PMKSY.
  • It has three main components namely the AIBP, HKKP and Watershed Development.
    • AIBP was launched in 1996 with the aim of accelerating the implementation of irrigation projects that exceed the resource capabilities of states.
  • HKKP aims to create new water sources through Minor Irrigation. Repair, restoration and renovation of water bodies, strengthening carrying capacity of traditional water sources, construction rain water harvesting structures.
    • It has sub components: Command Area Development (CAD), Surface Minor Irrigation (SMI), Repair, Renovation and Restoration (RRR) of Water Bodies, Ground Water Development.
  • Watershed Development is the effective management of runoff water and improved soil & moisture conservation activities such as ridge area treatment, drainage line 5 treatment, rain water harvesting, in - situ moisture conservation and other allied activities o n watershed basis.
• Objectives:
  • Convergence of investments in irrigation at the field level.
  • To expand the cultivable area under assured irrigation (Har Khet ko pani).
  • To improve on-farm water use efficiency to reduce wastage of water.
  • To enhance the adoption of precision-irrigation and other water saving technologies (More crop per drop).
  • To enhance recharge of aquifers and introduce sustainable water conservation practices by exploring the feasibility of reusing treated municipal based water for peri-urban agriculture and attract greater private investment in a precision irrigation system.
    • An aquifer is a body of porous rock or sediment saturated with groundwater. Groundwater enters an aquifer as precipitation seeps through the soil. It can move through the aquifer and resurface through springs and wells.
    • Peri-urban agriculture refers to farm units close to town which operate intensive semi- or fully commercial farms to grow vegetables and other horticulture, raise chickens and other livestock, and produce milk and eggs.
    • Precision Irrigation is an innovative technique that uses water wisely and helps farmers achieve higher levels of crop yield in a minimal amount of water
• Formulation: It was formulated by amalgamating following schemes:
  • Accelerated Irrigation Benefit Programme (AIBP) - Ministry of Water Resources, River Development & Ganga Rejuvenation (now Ministry of Jal Shakti).
  • Integrated Watershed Management Programme (IWMP) - Department of Land Resources, Ministry of Rural Development.
  • On-Farm Water Management (OFWM) - Department of Agriculture and Cooperation (DAC).
  • Implementation: Decentralized implementation through State Irrigation Plan and District Irrigation Plan.