Damage by wildlife now covered under PM crop insurance scheme

Nagpur: In a major move to mitigate human-wildlife conflict, crop depredation by wildlife is being included as add-on coverage under the Pradhan Mantri Fasal Bima Yojana (PMFBY).

PMFBY was launched in 2016 and replaces all the prevailing yield insurance schemes in India. National Tiger Conservation Authority (NTCA) has written to all the field directors of tiger reserves to consider providing add-on coverage for crop depredation to farmers in areas near the reserves where the risk is substantial and identifiable.

The detailed protocol and procedure for evaluation of bids have been prepared by the government in consultation with MoEFCC and the insurance company. “The add-on coverage will be optional for the farmers and applicable notional premium will be borne by the farmer. However, the state governments may consider providing additional subsidy on this coverage, wherever notified,” said NTCA officials.

“Though states already pay crop damage compensation, damage caused by wild animals has been incorporated in the guidelines as per the suggestions received from various states. If the scheme is implemented, farmers will have to contribute to get compensation,” said forest officials. “A panel set up in Maharashtra to suggest steps to curb crop damage too had recommended this step,” they said. It is intended for farmers whose fields are likely to be affected by raiding/grazing or by the impact of damage by wild animals and intends to provide protection against such incidents causing irreversible damage to standing and insured crop.

As per the guidelines, the definition of wild animals will be as per the categorization of the MoEFCC and state forest departments based on historic yield losses faced. In Maharashtra, wild boar, nilgai, deer, elephants, and gaurs are included in the list of animals for which crop damage compensation is paid to farmers. The present system is tedious and due to delayed payment, farmers resort to electrocution.

NTCA officials said, “Initially this add-on cover would be available on a pilot basis. It would be available for those crops only that have a history of demonstrable economic loss by attack of wild animals. List of these wild animals and area of coverage will be notified by the state government.” As per the guidelines, there will be two alternatives to implement the scheme. In alternative-I, states may ensure the actuarial premium rate quoted by the insurance companies should be rational to the past loss experience. Under this provision, all risks will be borne by the companies.

Under alternative-II, states not having requisite historical yield loss data to determine the rational actuarial premium can consider implementing this cover on the corpus model. Under this model government will have to create a corpus fund at the state level to provide claims to eligible farmers over and above the premium collected.