While many BJP-ruled states have opted out of the Pradhan Mantri Fasal Bima Yojana (PMFBY), Telangana state has re-entered the scheme. Yesterday, CM Revanth Reddy decided to rejoin the scheme after meeting with officials from the central government.
It should be noted that Telangana has adopted the central’s crop insurance scheme from 2016 to 2020 but made an exit later. Many states, including PM’s home state Gujarat, have opted out of the scheme citing high premium amounts quoted by insurance companies. Also, there are allegations that insurance companies were benefitting from the scheme and not farmers.
A few months ago, the then Agriculture Minister of Telangana, Singireddy Niranjan Reddy, mentioned in the Legislative Council that several large states, including Gujarat, Bihar, and West Bengal, had left the scheme. “We implemented the scheme for four years and paid a premium of Rs. 2,415 crores. But, our farmers got only Rs. 1,893 crores in the form of claims in return,” said Niranjan Reddy. He added that Telangana incurred a loss of Rs. 522 crores because of PMFBY.
Some studies have highlighted that the crop insurance scheme has failed to meet its intended objectives in almost all the states. The Congress party in Gujarat even accused that the scheme was marred with corruption.