Lucknow: The Uttar Pradesh government has approved a subsidy of ₹450 crore under the National Crop Insurance Programme (NCIP), releasing ₹247.39 crore as the first instalment to provide crop insurance coverage to farmers against losses caused by adverse weather and other natural calamities.
According to a government directive issued to the Agriculture Directorate on May 15, the released funds will be utilised in accordance with guidelines laid down by the Centre and the state government. The directorate has been instructed to spend the allocated amount during the current financial year and submit a utilisation certificate upon completion.
Support Against Crop Losses
The National Crop Insurance Programme was introduced by the Central government in 2013 to protect farmers from financial losses resulting from crop failures caused by unavoidable natural risks such as drought, floods, cyclones, hailstorms, pest infestations and plant diseases.
In 2016, the programme was restructured and merged into the Pradhan Mantri Fasal Bima Yojana (PMFBY), the Centre’s flagship crop insurance scheme aimed at expanding insurance coverage while reducing the financial burden on farmers.
Affordable Premium Structure
Under PMFBY, farmers pay only a small, fixed share of the insurance premium, while the remaining actuarial premium is subsidised jointly by the Central and state governments, generally on a 50:50 cost-sharing basis.
For the Kharif season, farmers pay a premium of 2 per cent of the insured sum for crops such as paddy, black gram and pearl millet. During the Rabi season, the premium is 1.5 per cent for crops including wheat, mustard and potato. For commercial and horticultural crops, farmers contribute 5 per cent of the total insured amount.
The scheme follows the principle of “One Nation, One Crop, One Premium,” ensuring uniform premium rates for farmers across the country.
Strong Participation in Uttar Pradesh
The PMFBY has received widespread participation since its launch, with more than 56.8 crore farmer applications enrolled across India over the years.
Uttar Pradesh has consistently been among the leading states in terms of enrolment. According to official sources, the state records between 35 lakh and over 70 lakh farmer applications annually, depending on the Kharif and Rabi seasons and prevailing weather conditions.
Officials said the latest fund release is intended to ensure timely payment of insurance premiums and strengthen financial protection for farmers facing crop losses due to unpredictable weather and other natural hazards.
