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.