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Jharkhand, a state ravaged by drought, is considering rejoining the Pradhan Mantri Fasal Bima Yojana (PMFBY) in the upcoming Kharif season. Recent predictions of El Nino impacting monsoon rainfall have raised concerns, prompting Jharkhand officials to explore the benefits of the crop insurance scheme. After witnessing severe drought conditions and submitting a significant finance memorandum to the Centre for assistance, Jharkhand now sees the potential advantages of the PMFBY. This move follows Andhra Pradesh’s successful re-entry into the scheme in the Kharif 2022 season, and Punjab’s budget announcement to do the same. In this article, we will delve into Jharkhand’s potential rejoining of the PMFBY and its implications for the state’s agriculture sector.
Is El Nino Threatening Jharkhand’s Monsoon? State Officials Eye Crop Insurance Solution
The state of Jharkhand is currently deliberating over rejoining the Pradhan Mantri Fasal Bima Yojana (PMFBY) as a means to mitigate the impact of a potential El Nino-induced drought. Last year, two-thirds of the state experienced drought conditions, with a staggering 64% rainfall deficiency in June. This region, prone to drought, understands the importance of safeguarding its agricultural interests. By reintroducing the PMFBY, Jharkhand aims to protect its farmers from the devastating consequences of natural calamities.
Learning from the Past: Why Jharkhand Opted Out of PMFBY in 2020-21
During the 2020-21 season, Jharkhand made the decision to withdraw from the PMFBY. This departure, along with other states like Bihar and West Bengal, stemmed from their own risk perception and financial constraints. However, without testing the scheme, states cannot fully grasp its benefits. The primary objective of a crop insurance scheme is to provide assistance during natural calamities. When faced with such adversity, states get an opportunity to assess the scheme’s effectiveness in delivering timely relief. Jharkhand’s severe drought in the previous year led them to reconsider their stance, prompting a potential return to the Centre’s crop insurance scheme.
Andhra Pradesh’s Success Story: Encouraging Jharkhand’s Reentry
The efforts of the Ministry of Agriculture and Farmers Welfare have yielded positive results, as Andhra Pradesh rejoined the PMFBY in the Kharif 2022 season. The state’s decision to participate in the scheme acts as an inspiration for Jharkhand, showcasing the potential advantages and security that crop insurance can provide. Punjab has also taken note of this success and announced its intention to rejoin the scheme through its budgetary plans. With neighboring states reaping the benefits, Jharkhand is keen to explore the possibilities.
Financial Implications and Premium Rates for Jharkhand
Jharkhand, primarily known for its forest and mining sectors, does not allocate significant land for agriculture. However, the state cultivates major crops like wheat, paddy, and maize during both the Kharif and Rabi seasons. Considering its limited agricultural area, Jharkhand expects to spend a relatively modest amount on crop insurance. The estimated total subsidy for the state is around ₹350-400 crores, with farmers contributing approximately ₹200 crores and the Centre providing ₹400 crores. Under the PMFBY, Jharkhand’s anticipated premium is estimated to be around ₹1,000 crores.
Bid-Based Premium Determination and Risk Assessment
The premium rates under the PMFBY are determined through a bidding process. For Kharif, farmers must pay a maximum of 2%, while for Rabi food and oilseed crops, the maximum is set at 1.5%. Commercial and horticultural crops require a 5% premium contribution. The remaining balance of the actuarial or bidded premium is shared equally between the Centre and the state government. However, northeastern states receive a 90:10 sharing ratio from the Kharif 2020 season. The premium rates for crops depend on the associated risk, while the state’s total liability is influenced by the actuarial premium rate, sum insured, area insured, and the number of crops notified.
The Neglected Northeast: Analyzing Fund Distribution Discrepancies
In the fiscal year 2020-21, northeastern states such as Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura received a mere 0.91% of the funds allocated. This discrepancy highlights the need for equitable distribution of resources to address the unique challenges faced by these states. By addressing these funding disparities, the PMFBY can provide better support to the northeastern region and foster its agricultural growth.
Tomato Prices Skyrocket: How Does It Affect Indian Consumers?
Additionally, this article will touch upon the skyrocketing tomato prices in various cities across India. Gorakhpur, in Uttar Pradesh, has witnessed prices crossing ₹120 per kg, doubling or even tripling compared to previous rates. The rising cost of this essential ingredient has sparked concern and frustration among Indian consumers. We will examine the factors contributing to this price surge and delve into the potential impact on households and the broader economy.
CSR Plans Should Be Self-Sustaining: MCA’s Stance on Corporate Social Responsibility
As a bonus topic, we will discuss the Ministry of Corporate Affairs’ perspective on Corporate Social Responsibility (CSR) plans. The Ministry emphasizes the need for self-sustainability in CSR initiatives, shedding light on the importance of long-term impact and financial viability. This approach aims to encourage corporations to develop sustainable and impactful projects that can endure beyond short-term commitments.
The potential reentry of Jharkhand into the PMFBY scheme marks a significant development for the state’s agriculture sector. With the specter of drought looming due to El Nino predictions, Jharkhand officials are exploring the benefits of crop insurance to safeguard their farmers’ interests. The success stories of Andhra Pradesh and Punjab’s budgetary commitment to the PMFBY serve as inspiration for Jharkhand’s potential return. By examining the financial implications, premium rates, and risk assessments associated with the scheme, Jharkhand can make an informed decision regarding its reentry. Additionally, we have addressed the pressing issue of soaring tomato prices and the Ministry of Corporate Affairs’ perspective on self-sustaining CSR plans. These diverse topics shed light on the agricultural and economic challenges facing different regions in India, underscoring the need for effective policies and initiatives to foster growth and resilience.
