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The state government of Bihar has announced to introduce the new State crop Assistance scheme. As per the state government it is the first of its kind crop insurance scheme for farmers of the state. The scheme has been launched after being encouraged by the Pradhan Mantri Fasal Bima Yojana already running parallel nationwide. Under the new scheme it is obvious that the state farmers will be offered with coverage against crop damage on account of harsh weather conditions.

Under this Fasal Sahayata Yojana / Insurance Scheme, govt. will provide relief to the farmers in case of failure of crops due to adverse weather. The state govt. will provide compensation amount of Rs. 7500 to Rs. 10,000 per hectare on the basis of threshold yield rate. Bihar govt. will implement this scheme from Kharif Season of FY 2018.

Bihar became the first state to launch its own Fasal Bima Yojana in the country. Previously, all the farmers were dependent on Pradhan Mantri Fasal Bima Yojana in case of crop loss. CM Nitish Kumar has taken this decision in the cabinet meeting to ensure that no farmer is deprived of the benefits in case of crop loss.

In this cabinet meeting, the state govt. approved altogether 39 proposals and also sanctions Rs. 215 crore for payment of salaries to teachers and allied staff in 1,128 madrassas. 


Incentive coverage details under the scheme

♦ The new scheme is a type of state sponsored scheme that will offer with full benefit to the state farmers. The state government will carry out the process for introduction of the scheme along with PM’s Fasal Bima Yojana, already existing nationwide.

♦ The coverage offered under this scheme will be divided amongst both state and central government alike. The state government officials have made it clear that the central and state government will offer with a coverage of over 49 percent each for crop insurance premium amounts.

♦ The state government has also mentioned that a contribution of 2 percent will also be made by the Bihar state farmers under the insurance scheme. The contribution will be made towards the premium amount.

♦ The actual production rate will decide the amount of financial assistance that will be offered to the farmers. Rs 7500 per hectare assistance will be offered in case of 20 percent less production. The assistance will be provided for 2 hectares of land.

♦ If the drop is below 20 percent then the assistance of Rs 10,000 per hectare will be offered to the farmers for two hectares of land for each farmer.


Bihar State Crop Assistance Scheme / Fasal Sahayata Yojana

All the farmers will get this assistance on the basis of threshold yield rate of scheduled crops in an event of crop loss. The assistance amount under this new Crop Insurance Scheme are as follows:-

  • Actual Yield is Reduced by 20% to Threshold Yield Rate – The state govt. will pay compensation upto a maximum of Rs. 15,000 for 2 hectares (Rs. 7,500 per hectare) to farmers in case the standing crop is damaged by less than 20%.
  • Actual Yield is Reduced by more than 20% to Threshold Yield Rate – Bihar govt. will pay assistance upto a maximum of Rs. 20,000 for 2 hectares (Rs. 10,000 per hectare) in case of crop failure.


This scheme will include all the ryots and non-ryots farmers in the state and this scheme will be launched from Monsoon Scheme for Farmers. State Crop Assistance Scheme will act as a replacement for Pradhan Mantri Fasal Bima Yojana. Under PMFBY Scheme, the farmers were unable to derive the scheme benefits.

In Pradhan Mantri Fasal Bima Yojana, the Centre and state had to bear 49 per cent premium amount each while the farmer had to pay 2% of the premium amount. Till date, state govt. paid Rs 491 crore as premium amount in 2016 while farmers has only received Rs 225 crore by insurance companies.



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