Bihar relents, agrees to implement Pradhan Mantri Fasal Bima Yojana

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After a slugfest over inability to foot the 50:50 share of bill in the Centre's crop insurance policy, the Bihar government has finally agreed to implement the Pradhan Mantri Fasal Bima Yojana on an "experimental basis" in the kharif season.

This tussle between the centre and state governments will, however, cost much needed insurance cover for most the 1.5 crore farmers in the state as they will now have only 48 hours to get enrolled under this scheme as the last date for implementation of it is August 15. The remaining three days will be holidays on account of second Saturday, Sunday and Independence Day falls Monday.

"The state government has decided to implement the Pradhan Mantri Fasal Bima Yojana (PMFBY) in the state keeping in mind the sentiments of cooperative federalism," Bihar's Cooperative Minister Alok Kumar Mehta told reporters here. "The crop insurance scheme will be implemented in its present form for the kharif season on an experimental basis,"

Mehta, however, made it clear that the scheme is being implemented on a trial basis with a view to assess whether it actually helps farmers or ends up benefitting the insurance companies. It would also be seen what amount of compensation the farmers get in the event of crop loss, he said.

The state government had recently said that the scheme should have been named 'PM-CM farmer insurance scheme' or 'Kendra-Rajya Fasal Bima Yojana' instead of being named exclusively after the Prime Minister as both the Centre and states have to bear the financial burden of its implementation.

Mehta held a meeting with Union Agriculture Minister Radha Mohan Singh in Delhi on August 8 but the issue remained unresolved. Subsequently, Singh wrote to Mehta saying that not implementing the scheme will ultimately harm the farmers of Bihar.