Agricultural Insurance in India part 12

 Okay, here are the structured notes from the Telugu lecture on Agricultural Insurance in India.

Topic: Agricultural Insurance in India (వ్యవసాయ భీమా)

I. Introduction & Need for Agricultural Insurance (00:00 - 00:59)

1. Purpose: To provide financial support and a safety net to farmers (రైతులు) facing crop loss due to uncontrollable factors.

2. Farmer's Situation:

   • Often rely on loans (అప్పులు) for cultivation.

   • Crop failure (due to natural calamities - ప్రకృతి వైపరీత్యాలు, pests - తెగుళ్లు, etc.) leads to inability to repay loans and severe financial distress (ఆర్థిక ఇబ్బందులు, అప్పుల ఊబి).

3. Role of Insurance:

   • Government schemes encourage farmers to pay premiums (భీమా ప్రీమియం).

   • In case of notified crop failure, farmers receive compensation (నష్టపరిహారం).

   • Helps farmers withstand losses and reduces debt burden.

   • Aims to improve the overall financial stability of farmers (ఆర్థిక స్థితిగతులను మెరుగుపరచవచ్చు).

II. Evolution of Crop Insurance Schemes in India

A. Comprehensive Crop Insurance Scheme (CCIS) - సిసి ఐఎస్ (00:59 - 03:22)

1. Full Name: సమగ్ర పంటల భీమా పథకం

2. Launched: 1985 Kharif Season (During 7th Five Year Plan).

3. Crops Covered: Food grains (ఆహార ధాన్యాలు), Pulses (పప్పు ధాన్యాలు), Oilseeds (నూనె గింజలు).

4. Premium (Farmer's Share based on Loan Amount):

   • Kharif Season: 2%

   • Rabi Season: 1%

5. Key Feature/Flaw: Insurance coverage was Optional. Farmers had to choose to opt-in when taking a loan.

6. Reason for Limited Success/Repeal: Due to its optional nature, many farmers did not enroll, limiting its effectiveness.

7. Repealed: 1997.

B. National Agricultural Insurance Scheme (NAIS) (03:22 - 06:18)

1. Full Names:

   • English: National Agricultural Insurance Scheme

   • Hindi: Rashtriya Krishi Bima Yojana (రాష్ట్రీయ కృషి భీమా యోజన)

   • Telugu: Jathiya Vyavasaya Bheema Pathakam (జాతీయ వ్యవసాయ భీమా పథకం)

2. Launched: Conceptually replaced CCIS in 1997.

3. Implementation Start: 1999 Rabi Season.

4. Key Change: Made Compulsory for farmers taking loans from financial institutions. Significantly increased coverage.

5. Premium Rates (Farmer's Share):

   • Wheat (గోధుమ): 1.5%

   • Paddy (వరి): 2.5% (Kharif), 2.0% (Rabi)

   • Oilseeds (నూనె గింజలు), Annual Commercial/Horticultural: 3.5% (Actuarial rates applied for these, capped).

6. Compensation: Up to ₹10,000 per acre initially mentioned (may vary based on sum insured calculation).

7. Subsidy: 10% premium subsidy for Small & Marginal Farmers.

8. Unit Area for Assessment: Initially large (e.g., Mandal/Block), later reduced (e.g., 100 hectares, Village Panchayat piloted).

9. Implementing Agency Evolution:

   • Initially faced challenges in crop loss assessment.

   • National Agricultural Insurance Corporation (NAIC) (జాతీయ వ్యవసాయ భీమా సంస్థ) established on April 1, 2003, as a dedicated agency.

   • NAIC supported by NABARD, GIC, DES (Directorate of Economics & Statistics), State Agriculture Depts.

C. Weather Based Crop Insurance Scheme (WBCIS) (06:18 - 07:17)

1. Full Name: వాతావరణ ఆధారిత పంటల భీమా పథకం

2. Launched Nationally: 2007.

3. Implemented in AP (Example): 2009 Kharif.

4. Basis for Claims: Based on adverse weather parameters (rainfall, temperature, humidity, frost, etc.) deviation from historical data/triggers, not on actual yield loss.

5. Crops: Targeted specific crops highly sensitive to weather variations (horticultural, commercial).

6. Advantage: Potentially faster claim settlement if weather triggers are met.

7. Limitation: Doesn't cover losses if weather parameters are normal but yield drops due to other factors (like pests not directly linked to weather triggers).

D. Modified National Agricultural Insurance Scheme (MNAIS) (07:17 - 08:12)

1. Full Name: మెరుగుపరచబడిన జాతీయ వ్యవసాయ భీమా పథకం

2. Launched: 2010 Rabi Season.

3. Key Modifications over NAIS:

   • Focus on Paddy (వరి).

   • Faster Payout: Provision for immediate payment of 25% of likely claims as advance.

   • Wider Risk Coverage: Included localized risks like pest attacks, animal attacks, hailstorms, landslides (in addition to major natural calamities). Excluded man-made risks.

   • Higher Premium Subsidy: Up to 75% subsidy was available, encouraging participation.

   • Reduced unit area (Village Panchayat).

E. National Crop Insurance Programme (NCIP) & Coconut Palm Insurance Scheme (CPIS) (08:12 - 09:17 - Implied & Mentioned)

1. NCIP Launch: 2014 (Kharif).

2. Merger: Integrated NAIS, WBCIS, MNAIS, and CPIS under one umbrella.

3. Coconut Palm Insurance Scheme (CPIS):

   • Targeted coconut growers in coastal states (MH, KA, GOA, KL, TN, AP, OD, WB).

   • Premium Sharing: Farmer 25%, State 25%, Centre 50%.

F. Pradhan Mantri Fasal Bima Yojana (PMFBY) (08:12 - End)

1. Full Name: ప్రధానమంత్రి ఫసల్ భీమా యోజన

2. Launch Timeline:

   • Announced: Jan 13, 2016

   • Cabinet Approval: Feb 18, 2016

   • Implementation: Kharif 2016

3. Replaced: NCIP (and its components like NAIS, MNAIS etc.)

4. Farmer's Premium Share (Uniform & Low):

   • Kharif (Food grains, oilseeds): 2% of Sum Insured

   • Rabi (Food grains, oilseeds): 1.5% of Sum Insured

   • Annual Commercial & Horticultural Crops: 5% of Sum Insured

5. Subsidy Sharing (Balance Premium): Centre & State share equally (50:50 generally). For North-Eastern/Himalayan states, Centre:State is 90:10.

6. Compulsion Status:

   • Initially (2016-2019): Compulsory for loanee farmers.

   • From 2020 (PMFBY 2.0): Made Optional for all farmers (including loanee farmers). Farmers must opt-in.

7. Risk Coverage:

   • Covers yield loss due to non-preventable natural risks (drought, flood, pests, diseases, landslides, hailstorms, fire, lightning).

   • Includes Prevented Sowing, Mid-season Adversity, Post-Harvest Losses (up to 14 days), Localized Calamities.

   • Exclusions: Man-made risks (war, nuclear risk, riots, theft, local disputes, burning due to farmer action).

8. Technology Use: Mandatory use of smartphones for Crop Cutting Experiments (CCEs), Remote Sensing, Drones for accurate and faster assessment.

9. Implementing Agencies: Empanelled Public and Private General Insurance Companies. GIC often acts as lead insurer/reinsurer.

10. Grievance Redressal: State and District level committees established.

11. Penalties: 12% interest penalty on States for delaying subsidy share and on Insurance Companies for delaying claim settlement.

12. National Crop Insurance Portal: Centralized portal for enrollment, data management (సమగ్ర జాతీయ పంటల భీమా పోర్టల్). Enables Direct Benefit Transfer (DBT) of claims.

13. Crop Insurance Week: Observed in 2021 (July 1st week - Kharif, Dec 1st week - Rabi) as part of Azadi Ka Amrit Mahotsav.

14. Significance: World's largest crop insurance scheme by farmer participation, 3rd largest by premium collected.

III. Key Supporting Institutions

1. NAIC (National Agricultural Insurance Corporation): Specialized company formed in 2003 to implement crop insurance.

2. GIC (General Insurance Corporation): Public sector reinsurer, involved in implementation and funding support.

3. NABARD: Provided initial funding support to NAIC.

4. DES (Directorate of Economics & Statistics): Provides crucial data for scheme design and assessment.

5. State Agriculture Departments: Collaborate in implementation and data collection.

This structure covers the evolution, key features, differences, and current status of major agricultural insurance schemes discussed in the lecture.