Page 612 - ES 2020-21_Volume-1-2 [28-01-21]

Agriculture & Food Management 239

Figure 9: Cost, MSP & Returns of Rabi Crops of year 2020-21

6000 106 93 120
Cost & MSP (₹ per quintal) 4000 65 78 78 50 90 Returns over cost (in per cent)
110
5000
100
80
70
3000
60
2000
50
1000
30
20
0 40

Cost* MSP % Return over Cost

Source: DAC&FW
* Includes all paid out costs such as those incurred on account of hired human labour, bullock labour/
machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers,
manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital,
diesel/electricity for operation of pump sets etc, miscellaneous expenses & imputed value of family labour.

Crop Insurance

7.14 Pradhan Mantri Fasal Bima Yojana (PMFBY) is a milestone initiative to provide a
comprehensive risk solution at the lowest uniform premium across the country for farmers.
As an end to end risk mitigation mechanism for farmers, the scheme extends coverage for the
entire cropping cycle from pre-sowing to post-harvest including coverage for losses arising
out of prevented sowing and mid-season adversities. Individual farm level losses arising out of
localized calamities and post-harvest losses are also covered due to perils such as inundation,
cloudburst and natural fire. The average sum insured per hectare has increased from ` 15,100
during the pre-PMFBY Schemes to ` 40,700 under PMFBY. The scheme completed five
successful years of implementation on 13th January, 2021

7.15 As an endeavour to constantly improve, the scheme was made voluntary for all farmers,
post its revamp in February 2020. Further the States have also been provided flexibility to
rationalize the sum insured so that adequate benefits can be availed by farmers. The Scheme
covers over 5.5 crore farmer applications year on year. As on 12 January, 2021, claims worth
th
` 90,000 crores have already been paid out under the Scheme. Aadhar seeding has helped in
speedy claim settlement directly into the farmer accounts. Even during COVID lock down
period nearly 70 lakh farmers benefitted and claims worth ` 8741.30 crores were transferred to
the beneficiaries.

PM-KISAN

7.16 The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme was launched in 2019 to
provide income support to all landholder farmer families across the country with cultivable land,
subject to certain exclusions. Under the Scheme, an amount of ` 6000 per year is released in