Government mulls algorithm boost to farm insurance payouts

The Union agriculture ministry is looking at algorithms to fix delays in paying farmers their claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY), a major issue hobbling the flagship crop insurance scheme. The government is experimenting with big data analytics, artificial intelligence (AI) and machine learning to quicken assessment of crop damage, a lengthy and often disputed mechanism, people familiar with the matter said. If the PMFBY is to achieve its most critical goal -- timely payouts to farmers -- it can't fly without a raft of high-end technological fixes, experts say. Analysing the scheme's design in his recent work'Supporting Indian Farms the Smart Way', economist Ashok Gulati predicted that, for prompt crop insurance settlement, India could even need a fleet of cloud-penetrating satellites for faster crop-loss estimates. Setting up such a constellation would likely cost Rs 2,000 crore, according to Gulati's calculations.