8.40 ndian onom
There will be a uniform premium of only and Modified NAIS of 2010–11. The scheme is
2 per cent to be paid by farmers for all being implemented by the private sector as well
kharif crops and 1.5 per cent for all rabi as the public sector (AICIL) agriculture insurance
crops. companies. The scheme is estimated to cover 50
In case of annual commercial and per cent of the cropped area by 2018-19 (which
horticultural crops, the premium to be was 30 per cent by 2016-17), as per the Union
paid by farmers will be only 5 per cent. Budget 2017-18. Looking at the frequent
The premium rates to be paid by farmers droughts and floods, this scheme is seen as an
are very low and balance premium will be important initiative from the government.
paid by the government to provide full
insured amount to the farmers against nAtIonAl mIssIon For sustAInABle
crop loss on account of natural calamities. AGrIculture (nmsA)
There is no upper limit on Government
subsidy. Even if balance premium is 90 per The NMSA, launched in 2011–12, aims at
cent, it will be borne by the Government. enhancing food security and protection of resources
25 per cent of the likely claim will be such as land, water, biodiversity and genetic
settled directly on farmers account and resources by developing strategies to make Indian
there will be one insurance company agriculture more resilient to climate change.53 The
for the entire state as well as farm level Economic Survey 2011–12 discusses the Impacts
assessment of loss for localised risks and of Climate Change on Indian Agriculture in the
post harvest loss. following points:
Earlier, there was a provision of capping (i) Indian agriculture, with two-third rainfed
the premium rate which resulted in low area remains vulnerable to various vagaries
claims being paid to farmers. This capping of monsoon, besides facing occurrence
was done to limit Government outgo on of drought and flood in many parts of
the premium subsidy. This capping has the country. Natural calamities such as
now been removed and farmers will get drought and flood occur frequently in
claim against full sum insured without many parts of the country.
any reduction. (ii) Climate change will aggravate these risks
The use of technology will be encouraged and may considerably affect food security
to a great extent. Smartphones will be through direct and indirect effects on crops,
used to capture and upload data of crop soils, livestock, fisheries and pests. Building
cutting to reduce the delays in claim climate resilience, therefore, is critical.
payment to farmers. Remote sensing will (a) Potential adaptation strategies to
be used to reduce the number of crop deal with the adverse impacts of
cutting experiments. climate change are :
The PMFBY replaced the existing52 NAIS (b) Developing cultivars tolerant to heat,
(National Agricultural Insurance Scheme) of 1999 moisture and salinity stresses;
52. Ministry of Finance, Economic Survey 1990–2000 53. Prime Minister’s Council on Climate Change
(New Delhi: Government of India, 2000); Ministry (PMCCC) approved the Mission in September 2010
of Finance, Economic Survey 2010-11 (New Delhi: and the Ministry of Agriculture initiated activities under
Government of India, 2011). the Mission in 2011–12.