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Source: The post is based on the article “Centre plans revamp of livestock insurance scheme to raise coverage” published in The Hindu on 10th April 2023
What is the News?
The Central Government is considering launching a comprehensive livestock insurance scheme modelled on the Prime Minister’s Fasal Bima Yojana.
Comprehensive livestock insurance will replace the present Livestock Insurance Scheme.
What is the Livestock Insurance Scheme?
Nodal Ministry: Department of Animal Husbandry and Dairying
Type: Centrally sponsored scheme
Launched in: The scheme was implemented on a pilot basis during 2005-06 and 2006-07 of the 10th Five-Year Plan and 2007-08 of the 11th Five-Year Plan in 100 selected districts.
– The scheme is being implemented on a regular basis from 2008-09 in 100 selected districts of the country.
Objective: To provide a protection mechanism to the farmers and cattle rearers against any eventual loss of their animals due to death.
– To demonstrate the benefit of the insurance of livestock to the people and popularize it with the ultimate goal of attaining qualitative improvement in livestock and their products.
Under the scheme, the cross-bred and high-yielding cattle and buffaloes are being insured at the maximum of their current market price. The premium of the insurance is subsidized to the tune of 50%. The entire cost of the subsidy is being borne by the Central Government.
– The benefit of subsidy is being provided to a maximum of 2 animals per beneficiary for a policy of a maximum of three years.
– The scheme is being managed by the respective State Livestock Development Boards.
What are the challenges faced by the scheme?
Farmers are often caught in the fight between State government officials and insurance companies.
Not even a single animal was insured during 2022-23, whereas during 2021-22, 1,74,061 were insured.
High premium rates and general economic conditions of farmers are reasons for lower enrolment in the scheme.
