TOPIC-1 Crop Insurance Coverage Under Pradhan Mantri Fasal Bima Yojana (PMFBY)

Syllabus: GS 3 / Economy

In the News

• General insurance companies reduced exposure to PMFBY during FY24.
• Gross direct premium underwritten declined by 4.17% to Rs 30,677 crore.
• Previous year: Rs 32,011 crore.
• Main cause: 32% fall in premium income by Agriculture Insurance Company (AIC).

About PMFBY

• Launched: 2016
• Objective: Provide simple, affordable, and comprehensive crop insurance.
• Covered Crops: Food crops (cereals, millets, pulses), oilseeds, annual commercial and horticultural crops.

Key Features

• Coverage: Non-preventable natural risks, pre-sowing to post-harvest.
• Premium Rates:
  • Kharif crops: 2%
  • Rabi crops: 1.5%
  • Commercial/Horticultural crops: 5%
• Participation: Voluntary, mandatory for loanee farmers.
• Sum Insured: Adequate compensation, no upper limit on government subsidy.
• Technology: Smartphones, remote sensing, satellite imagery.

Benefits

• Financial Security: Support in case of crop failure.
• Risk-taking: Encourages modern agricultural practices.
• Inclusive Growth: Covers small and marginal farmers.
• Ease of Access: Simplified procedures, technology integration.
• Credit Flow: Ensures agricultural credit flow, promotes food security, diversification, growth.

Challenges

• Delayed Claim Settlements
• Inadequate Farmer Awareness
• High Financial Liabilities for States
• Unreliable Loss & Yield Assessment

TOPIC-2 Climate and Aquatic Food Production System in Assam

Climate of Assam

• Category: Tropical monsoon rainfall
• Humidity: High levels
• Rainfall:
  • Average annual: 175 cm (west) to 300 cm (east)
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• Climate Types:
  • Plains: Tropical with high humidity
  • Hills: Sub-alpine
  •  

Impact of Climate Change

• Global Impact: Felt worldwide, some regions more affected
• Assam's Role:
  • High forest cover, acting as a climate protector
  • Victim of climate change

Aquatic Food Production System

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• Modes:
  • Aquaculture: Farming fish in ponds and tanks
  • Beel and open water fisheries: Capturing fish from floodplain wetlands
• Other Sources: Riverine fisheries, miscellaneous sources (small portion)
• Focus: Policies and strategies centered on aquaculture and beel fisheries

Fish Production

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• Ranking:
  • First in fish production among Northeastern states
  • Third in fish seed production
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• Growth:
  • Last five years: 28.4% increase in fish production, 74.11% rise in seed production

Climate Change Effects

• Phenomena: Rise in temperature, change in precipitation, floods, droughts
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• Impact on Aquatic System:
  • Affects both culture and capture fisheries
  • Fish metabolism and reproductive biology influenced by temperature changes
  • Extreme weather events causing crop loss, fish escape, mortality

Adaptation and Mitigation

• Adaptation:
  • Adjusting to change with a long-term vision
  • Necessary to minimize negative impacts
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• Mitigation:
  • Lowering or removing greenhouse gas emissions
  • Reducing climate change naturally
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• Approach: Adaptation and mitigation must go hand in hand

Climate-Resilient Technologies

• Requirements: More climate-resilient technologies and innovative practices
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• APART Project:
  • World Bank-assisted project in Assam
  • Objective: Develop and promote climate-resilient technologies
  • Demonstrations: Short duration fish culture, overwintering of seed, paddy-fish integrated farming, polyculture of high-yielding carps, carp polyculture with mola and other indigenous species, freshwater prawn and cage culture in beels

Flooding in Assam

• Prone Areas: Frequent flooding due to vast river network
• Flood-Prone Area: 3.105 million hectares (39.58% of the total land area)
  • National average: 10.2%

Coping with Climate Change

• Current Measures: Short-term coping strategies
• Needed Improvements: Scientific advancements for long-term relief
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• Adaptation Strategies:
  • Raising dyke height for ponds near rivers and low-lying areas
  • Ensuring dyke height 0.6-0.7 meters above desired water depth
  • Slope considerations for physical stability and erosion control
  • Planting grass and crops on dykes for erosion control and additional income

Integrated Farming

• Integration: Fish farming with flood-tolerant livestock (ducks) and crops
• Benefits: More employment, better economic returns, reduced risk
• Land Shaping: Reclamation, re-excavation, step-cutting for vegetable cultivation
• Additional Measures: Crop-weather insurance, support from Farmers Producers Companies and Fishery Cooperatives

Summary

Assam's aquatic food production system faces significant challenges due to climate change. Adaptation and mitigation strategies are crucial for sustainable development. The APART project and other initiatives aim to promote climate-resilient technologies and practices to ensure the long-term viability of fish farming and fisheries in the state.