Pradhan Mantri Fasal Bima Yojana

Farmers will not be burdened with high premium underthe Pradhan Mantri FasalBima Yojana.

The Union government on Wednesday approved the much-talked about new crop insurance scheme in which it has kept the premium amount for farmers at a maximum of two per cent for foodgrains and oilseeds while capping it up to five per cent for horticulture and annual commercial crops.

The new scheme is being perceived as Prime Minister Narendra Modi’s first significant move to address rural hardship and woo rural voters ahead of key elections.

“It is a historic day and I strongly believe the Pradhan Mantri Fasal Bima Yojana will bring about a huge change in the lives of farmers,” Mr. Modi tweeted after the scheme was jointly announced by the Ministers of Home, Agriculture and Parliamentary Affairs.

Home Minister Rajnath Singh told reporters here that the Cabinet had approved the PMFBY, replacing the existing National Agricultural Insurance Scheme (NAIS) as well as the modified NAIS. The scheme will be implemented from the kharif season this year.

“The farmer’s share of premium has been substantially reduced and the government will provide subsidy on premium,” said Mr. Singh, adding that government liability on premium subsidy would be shared by the Central and State governments on a 50:50 basis.

The scheme will have a uniform premium of only two per cent to be paid by the farmers for all kharif crops and 1.5 per cent for all rabi crops. In case of annual commercial crops such as cotton and horticultural crops, it will be only five per cent.

The premium rates to be paid by farmers are kept very low and the balance premium will be paid by the government to provide full insured amount to the farmers against crop loss on account of natural calamities.

There is no upper limit on government subsidy. Even if the balance premium is 90 per cent, it will be borne by the government.

Coverage raised

The scheme comes at a time the country is facing a drought for the second straight year due to poor monsoon rains and the government wants to enhance insurance coverage to more crop area to protect farmers from climate variations.

The government expects the scheme to help increase the insurance coverage to 50 per cent of the total crop area of 194.40 million hectares from the existing level of about 25-27 per cent crop area.

Meanwhile, the BJP has welcomed the initiative terming it as a pro-farmer decision which will go a long way in reducing farmers’ woes.

Digital Penetration

Telecommunication revolution since late 90’s has opened a vast vista of digital expansion in Indian society eg online education, e commerce, video conferencing, social networking, e-governance.

However rather than being a bridge between India and Bharat the digital divide had further accentuated the traditional inequalities of class caste and gender

Reason:

1. Low digital penetration in rural area: cost, infrastructure

2. Low literacy and even poorer digital literacy

3. Abject poverty: where one third below poverty line food is prime necessity

4. Fragmented and haphazard government policy so far

5. Government alone stakeholder: given magnitude of task private and Ngo participation is must

6. Linguistic barrier: not much content in local language

7. Older generation not tech savvy

8. Outdated school curriculum and lack infrastructure and fund

9. Absence of large scale media campaign to drive home point the benefits of technology

Indian growth story has bypassed majority of population who are not part of present knowledge society. The Government need to expeditious implementation of NOFN project improving digital literacy (Digital India mission). Update curriculum in government school. Involve more stakeholders like Ngo and Private sector. CSR funding towards digital literacy mission. Expedite content development in local language. Frugal innovation to reduce cost of hardware. Solar powered cells to overcome energy crisis in far off places. Special attention to vulnerable groups linguistic minorities, women , old , Sc and ST.

Ensure that Digital mission is not an end in itself rather it empowers people, change their life, deepen democratic
participation, and project India as true knowledge society.