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Indian Economy

Ministry of Agriculture & Farmers Welfare

Insurance Cover for Damage of Crops by Animals

Posted On: 10 AUG 2018 4:22PM by PIB Delhi

The latest available estimates of average income per agricultural household in the country are based on the “Situation Assessment Survey of Agricultural Households” conducted by National Sample Survey Office (NSSO) during its 70th round (January 2013 – December 2013). As per the survey results, the average monthly income per agricultural household from all sources is estimated to be Rs. 6,426/.


Government has not conducted any such Survey since 2013. However, the National Statistical Commission (NSC) has decided to conduct the next Situation Assessment Survey (SAS) of Agricultural Households in the NSS 77th round (January 2019- December 2019) with reference to the agricultural year July 2018 – June 2019.


Under SAS 2013, among other things, the reasons for the crop loss with respect to each major crop were ascertained. As per the Survey results, during the first half of the agricultural year (July 2012-Dec 2012), inadequate rainfall/ draught was the most reported reason for crop loss for all the selected crops, except coconut and urad, wherein ‘disease/insect/animal’ was reported as the major reason for crop loss.


During the period (Jan 2013-June 2013), ‘disease/insect/animal’ was the most reported reason for crop loss for most of the crops. For crops like gram, potato, rapeseed/ mustard, other natural calamities was one of the major reasons reported by households.


Under the Pradhan Mantri Fasal Bima Yojana (PMFBY), a comprehensive risk insurance package is provided to cover yield losses due to non-preventable risks, viz., natural fire and lightning, storm, hailstorm, cyclone, typhoon, tempest, hurricane, tornado, flood, inundation and landslide, drought, dry spells, pests/diseases, etc. The losses to crops due to wild animals are preventable in nature and therefore, not covered. Further, due to the involvement of issue of moral hazard at the time of assessing the loss/risk, insurance companies are at present not providing cover for this risk.


However, there are systems in place, both at the Centre and State level, for compensation for losses to farmers in the country due to destruction of crops by wild animals. The Ministry of Environment, Forest and Climate Change provides financial assistance to State/UTs under the Centrally Sponsored Schemes of ''Integrated Development of Wildlife Habitats'', ''Project Tiger'' and ’Project Elephant'' for management of wildlife and its habitats in the country. It includes compensation for depredation by wild animals including cattle lifting, crop damage, loss of life and property. State Governments also provide relief from their own funds for damage to crops by wild animals.


This Information was given by the Minister of State for Ministry of Agriculture & Farmers Welfare Shri Gajendra Singh Shekhawat



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