OPERATIONAL GUIDELINES OF PMFBY: A Guide to Agriculture & Future Challenges
Introduction
The Program on Farmers’ Bringing Forward Scheme (PMFBY) is a crucial initiative aimed at boosting agricultural productivity in the North Western states of India. This scheme focuses on ensuring that farmers receive timely and adequate support through training, infrastructure development, and financial assistance. However, challenges persist regarding claim processing, claims disputes, and payment timelines.
Key Operations
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Insurance Selection: The selection of insurance models and proposals is conducted through transparent bid processes managed by State Government or the Joint Committee of State Governments (JSTOG). Farmers are enrolled in these schemes, ensuring quality assurance.
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Crop Yield Assessment: Crop yield/crop loss data is assessed using a formula to determine admissible claims. This process helps in managing resources efficiently and ensures farmers receive the necessary support.
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Payment Penalties: Claims that aren’t settled on time face penalties of up to 12% as part of the operational guidelines. This mechanism ensures fairness, especially during peak season challenges like Kharif (April to June) yields.
Challenges Addressed
Despite these efforts, various issues remain:
- Incorrect Proposal Submissions: Complaints about incorrect or delayed submissions by farmers for insurance proposals were common.
- Discrepancies in Yield Data: Disputes arose between the State Government and insurance companies over yield data, impacting claims resolution.
Recent Implementations
To address these challenges, a dedicated module called “Digiclaim” has been introduced since 2023. This module integrates the National Crop Insurance Portal (NCIP) with public finance management systems. By providing real-time tracking of claim payments and processing, NCIP ensures timely submissions from farmers.
Starting in 2024, if a farmer fails to make timely payments, a 12% penalty will be levied against the insurance company’s accounts through NCIP. This marks the first season for such automated penalties, enhancing transparency and fairness.
Conclusion
Operational Guidelines of PMFBY are vital in addressing challenges related to claim processing and dispute resolution. The introduction of Digiclaim module aims to improve efficiency, ensuring timely payments and fair treatment. As farmers continue to face challenges, these guidelines will remain a cornerstone for agricultural productivity and support.