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Centre Plans Revamp Of A Livestock Insurance Scheme To Raise Coverage


At the moment, less than 1% of the country’s cow population is insured; because the yearly premium is prohibitively expensive for most farmers, the government is considering lowering the rate and providing a subsidy to cattle rearers from SC/ST groups.

Points to Ponder:

  • To solve the issue of zero livestock insurance coverage in 2022-23, the Union Animal Husbandry Ministry is considering a comprehensive livestock insurance program.
  • The scheme is designed after the Prime Minister’s Fasal Bima Yojana and will be implemented in advance of the 2024 Lok Sabha election.
  • To encourage cattle rearers from Scheduled Caste (SC) and Scheduled Tribe (ST) populations to enroll in the plan, the proposal involves waiving the premium.
  • Currently, less than 1% of cattle in the country are insured, and the average annual premium is 4.5% of the insured amount.
  • The Animal Husbandry Ministry met with insurance firms and other stakeholders to discuss the issue and is attempting to lower the premium to encourage enrollment.
  • The present Livestock Insurance Scheme operates in 100 districts throughout the country and is overseen by the different State Livestock Development Boards.
  • Farmers are frequently trapped in a battle between state government officials and insurance firms, which impedes enrollment.
  • The committee recommended that the Ministry take proactive steps to make the livestock insurance process easier for beneficiaries and investigate the feasibility of building an App-based Livestock Insurance facility for livestock owners.
  • To encourage participation, the government is considering subsidizing the premium paid by socially deprived farmers from SC-ST communities.
  • Approximately two lakh cattle died as a result of the lumpy skin disease pandemic, and farmers sought compensation from the government.
  • The government wants more animals insured, including certain exquisite cow breeds insured by breeders.
  • The Centre’s transition to a comprehensive livestock insurance program aims to lower premiums, expand enrollment, and provide maximum livestock coverage.