Major Relief for Farmers: 12% Interest on Delayed Insurance Claims, Record Growth in Agriculture Over 10 Years

Union Minister of Agriculture, Farmers Welfare and Rural Development, Shri Shivraj Singh Chouhan, presented a detailed account of India’s current agricultural scenario in the Lok Sabha. He highlighted key initiatives and achievements under the leadership of Prime Minister Narendra Modi aimed at boosting farmers’ incomes, backed by solid data.

12% Interest on Delayed Crop Insurance Claims:

Shri Chouhan announced that if the claim amount under the Pradhan Mantri Fasal Bima Yojana (PMFBY) is not settled within 21 days, the insurance company will be required to pay 12% interest. This interest will be directly credited to the farmer’s bank account. The same rule will apply in cases where the State Government delays its share of the premium.

Exceptional Growth in Agricultural Production over the Last Decade:

The Minister shared that in the past 10 years, India’s total food grain production has risen significantly from 246.42 million tonnes to 353.96 million tonnes.

1. Pulse production increased from 16.38 to 25.24 million tonnes
2. Oilseed production rose from 27.51 to 42.61 million tonnes
3. Horticulture production grew from 280.70 to 367.72 million tonnes
4. Milk production also saw record growth, credited entirely to the hard work of Indian farmers

Doubling of Farmers’ Incomes and Budget Boost:

Shri Chouhan emphasized that many farmers have seen their incomes double during the tenure of the NDA Government. Compared to the ₹27,000 crore agriculture budgets under the previous administration, the current budget has surged to ₹1.27 lakh crore. Under the PM-KISAN scheme, 10 crore farmer families receive direct annual assistance of ₹6,000.

Substantial Hike in MSP and Record Government Procurement:

There has been a significant increase in the Minimum Support Price (MSP) across various crops, along with record levels of procurement by the government:

1. Paddy: ₹1,310 → ₹2,369
2. Moong: ₹4,500 → ₹8,768
3. Soybean: ₹2,560 → ₹5,328
4. Tur (Arhar): ₹4,300 → ₹8,000
5. Mustard: ₹3,700 → ₹7,721

Other Key Announcements and Measures

1. Use of YESTECH, a satellite-based technology, to assess crop losses for greater transparency in insurance claims
2. 100% MSP procurement of pulses like tur, urad, and masoor under the PM-AASHA scheme
3. Subsidy on drip and sprinkler irrigation systems under the Per Drop More Crop initiative
4. Promotion of natural farming and balanced use of organic fertilizers
5. New directives to ensure tenant farmers benefit from PMFBY
6. Inclusion of 6.55 lakh tenant and sharecropper farmers under the crop insurance scheme