Integrated crop cover for Kharif, Rabi under study

Hyderabad: The Telangana government is considering integrating crop insurance for both Kharif and Rabi seasons for the upcoming financial year (2017-18).

It aims to gain from the ‘increased competition’ from both public and private sector insurance companies offering crop insurance to farmers.

According to officials, given the fact that the year 2016-17 proved to be a burdensome for the farmers in terms of payment of premium, the government is considering the idea of single tender process for the crop insurance for next financial year.

During the current financial year, the reduced competition due to absence of Agriculture Insurance Company of India, the private companies which quoted more than usual won the bidding process.

This not only has increased the burden of premium on the farmers, but also increased confusion, as Central government has come up with Pradhan Mantri Fasal Bima Yojana (PMFBY).

“The Central government has been already informed about the possible integration of tender process. Since the number of competitors will increase for yearlong crop insurance, we are studying its feasibility,” said a higher official of Agriculture Department.

Following the introduction of PMFBY in the early 2016, there has been a considerable decrease in the amount paid by the farmers towards premium in other schemes.

They pegged their hopes on the new scheme, as the farmers need to pay only 2 percent and 1.5 percent for regular crops in Kharif and Rabi seasons respectively and 5 percent for other commercial crops.

However, the officials acknowledged that the scheme with its increased complexities proved to be a failure in the State. “Central government should have tried to simplify the scheme, but it failed to reach the farmers because of the increased complications,” felt an official.

Even as the PMFBY was launched, Agriculture Insurance Company of India which took part in the bidding process for the last two decades in the Telugu States avoided participation for the first time.

This paved way for the private companies quoting more and winning the tender process.

With entry of private companies, it was thought that the awareness on agriculture insurance would increase, but most of the farmers sticked to PMFBY.

Eyebrows are now being on the merits and demerits of cotton being included in the PMFBY in the next financial year.