Centre okays 90% subsidy for PMFBY & RWBCIS for the Northeastern States 

A CORRESPONDENT

NEW DELHI: The Union Cabinet on Wednesday has decided to increase the Central share in premium subsidy for the 'Pradhan Mantri Fasal Bima Yojana' (PMFBY) and the 'Restructured Weather Based Crop Insurance Scheme' (RWBCIS) up to 90 per cent for the north-eastern States from the existing sharing pattern of 50:50.

The Union Cabinet chaired by Prime Minister Narendra Modi has further approved revamping of PMFBY and RWBCIS to address the existing challenges in the implementation of Crop Insurance Schemes.

"With these changes, it is expected that farmers would be able to manage risk in agriculture production in a better way and will succeed in stabilizing the farm income. Further, it will increase coverage in the northeastern region enabling farmers of NER to manage their agricultural risk in a better way. These changes will also enable quick and accurate yield estimation leading to faster claims settlement," said Union Minister Prakash Javdekar.

These changes are proposed to be implemented from the Kharif-2020 season throughout the country.

The revamping plan further said that the allocation of business to insurance companies to be done for three years for both PMFBY and RWBCIS.

"Option shall be given to States/UTs to choose scale of finance or district level value of notional average yield (NAY) minimum support price (MSP) as sum insured for any district crop combination. Farm gate price will be considered for the other crops for which MSP is not declared," said the revamp model.

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