In India, farmer suicides account for 15% of the total suicides. One of the main reasons is crop failure, which leads to high debt burdens, starvation, and low mental health. To support farmers, the Indian government has rolled out several new initiatives to provide relief. One of the most effective ones is the National Crop Insurance Programme (NCIP) or Rashtriya Fasal Bima Karyakram. NCIP has been implemented across all states and union territories of India and benefits all farmers, including tenant farmers and croppers, under a central sector scheme. Here’s a closer look at this scheme.
Components of the NCIP in India
NCIP plays a significant role in absorbing crop price fluctuations, climatic shocks and other adverse situations. It has three components. Here’s a look.
Modified National Agricultural Insurance Scheme (MNAIS)
This is a modified version of the National Agricultural Insurance Scheme. The main objectives are to offer coverage against prevented sowing and failure of notified crops (crops eligible for government support like cereals, millets, oilseeds, and horticultural crops) due to pests, diseases or calamities. Financial aid is also provided to help farmers use better agricultural technologies and high-end farming practices.
Weather-Based Crop Insurance Scheme (WBCIS)
This mitigates financial loss incurred by insured farmers due to expected crop loss from unfavourable weather conditions. This includes extreme temperatures, cloudbursts, rainfall, wind, or high humidity. Cereals, millets, pulses, oilseed, and horticulture crops are covered.
Coconut Palm Insurance Scheme (CPIS)
The entire coconut plantation might get wiped out due to a natural disaster. Farmers with at least 5 healthy coconuts bearing palms are eligible for this scheme. Coconut palms of all varieties, including tall, dwarf and hybrids, are covered against tsunamis, storms, floods, hailstorms, accidental fires, earthquakes, and landslides. A tree is declared unproductive and will not be under the insurance when further growth is not possible after a peril.
Who is Eligible for the National Crop Insurance Programme?
All farmers taking seasonal agricultural operations (SAO) loans from financial institutions for notified crops qualify for the National Crop Insurance Programme. They are known as loanee farmers, and they are covered on a compulsory basis. Non-loanee farmers can choose either the Modified National Agricultural Insurance Scheme (MNAIS) or the Weather-Based Crop Insurance Scheme (WBCIS). For this, they need to submit documentary evidence of land records and/or applicable contract/agreement details.
How Does the National Crop Insurance Programme Work?
Public and private sector general insurance companies are shortlisted by the Department of Agriculture & Cooperation (DAC), Government of India, and finally selected by the concerned State Government/Union Territory (UT) to implement MNAIS.
Panchayati Raj institutions may be involved at different stages of the implementation of the crop insurance scheme. This is especially prominent while deciding on the crops, beneficiaries, awareness creation among farmers, and getting their feedback. The scheme provides maximum coverage for SC, ST, and women farmers.
Exclusions of the National Crop Insurance Programme
Losses arising due to nuclear risks, wars, and malicious damage are all excluded from the NCIP.
State governments and union territories are being persuaded by the Ministry of Agriculture and Farmers Welfare to increase their coverage and notify more crops. Further, chief ministers of states who had withdrawn from this scheme have also been requested to review the matter and implement the scheme for their farmers.
