The ambitious Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme was launched by India. Farmers who lose crops or produce due to natural disasters or other unforeseen events may receive financial support and risk reduction from this initiative. The 2016 plan has helped millions of farmers and saved their livelihoods.
Objectives
The PMFBY operates under the motto of “One Nation, One Crop, One Premium” and aims to achieve several goals:
- Provide affordable comprehensive insurance coverage against crop failure, damage, and loss.
- Increase the penetration of crop insurance by covering a larger portion of the sown area.
- Stabilize farmer incomes and ensure sustainability in agricultural production.
- Facilitate the flow of credit to the agriculture sector.
- Encourage farmers to adopt innovative and modern agricultural practices.
- Foster competition in the agriculture sector.
- Protect farmers from production risks.
- Offer goods and services tax exemption to farmers.
PMFBY Details:
The PMFBY scheme provides insurance coverage for specific crops and agricultural risks related to crop yield. It covers the entire crop production cycle, including pre-sowing, growth, and harvest stages. The system covers crop failure, post-harvest losses, natural disasters, unseasonal rainfall, crop diseases, and pest infestations. The insurance claim size is determined based on the proportion of the shortfall from the threshold yield multiplied by the sum insured.
Premiums:
Farmers participating in the PMFBY scheme are required to pay a nominal share of actuarial premiums, which vary based on the type of crop. The premiums for Kharif crops are 2%, Rabi crops are 1.5%, commercial crops are 5%, and horticultural crops are 5%. The state and central governments collectively subsidize 95-98.5% of the actuarial premium, with a 1:1 ratio. The premium amount paid by farmers is deducted from their seasonal agricultural operations (SAO) crop loans.
Beneficiaries:
All farmers growing notified crops in the notified areas are eligible for coverage under the PMFBY scheme. The beneficiaries can be categorized into two groups: loanee farmers and non-loanee farmers. Loanee farmers who have been sanctioned loans for seasonal agricultural operations (SAO) are covered, and the insurance premiums are deducted from their SAO crop loans. Non-loanee farmers, including those with non-standard Kisan Credit Card (KCC) scheme-linked crop loans or no crop loans, can voluntarily enroll in the scheme.
Insurance Companies:
The PMFBY scheme is implemented by 18 emimpanellednsurance companies, including Agriculture Insurance Company, Bajaj Allianz General Insurance Co. Ltd., ICICI Lombard General Insurance Co. Ltd., and others.
Progress:
Since its launch, the PMFBY scheme has witnessed increasing enrollment and coverage. Over time, more farmers have been covered and more have received insurance benefits. The government and farmers’ premiums and claims filed and settled have also improved.
The Way Forward:
The PMFBY scheme is considered a significant initiative to provide comprehensive risk coverage to farmers at affordable rates. The Ministry of Agriculture & Farmers’ Welfare has revised the operational guidelines for the scheme based on stakeholder engagement and feedback. The government wants to use satellite imaging, remote sensing devices, drones, artificial intelligence, and machine learning to boost crop production and foresee issues. In the FY 2021-22 budget, the government allocated a substantial amount for the PMFBY initiative, highlighting its continued commitment to supporting farmers in India.
What is Pradhan Mantri Fasal Bima Yojana?
Pradhan Mantri Fasal Bima Yojana, also known as PMFBY, is a crop insurance scheme that offers comprehensive coverage to farmers against various risks associated with farming. Farmers receive financial aid for crop damage caused by natural disasters like drought, flood, cyclone, pests, and diseases. The program safeguards farmers from agricultural risks.
How Does Pradhan Mantri Fasal Bima Yojana Work?
Farmers pay a nominal premium depending on the crop and sum insured under the Pradhan Mantri Fasal Bima Yojana. The central and state governments bear a substantial portion of the premium, reducing the burden on the farmers. Farmers can claim compensation for crop damage or loss. The claims are settled within a specified time frame to ensure timely support to the farmers.
Key Features of Pradhan Mantri Fasal Bima Yojana
- Wide Coverage: PMFBY provides coverage for all food crops, oilseeds, and annual commercial/horticultural crops notified by the respective state governments.
- Premium Sharing: The premium is shared equally between the farmer and the central and state governments. For Rabi crops, the farmer’s share is 2%, while for Kharif crops, it is 1.5%.
- Sum Insured: The sum insured is determined based on the scale of finance or the loan amount extended to the farmer for the crop.
- Cultivable Area: The scheme covers all cultivable areas in the country, ensuring that farmers from various regions can avail themselves of the benefits.
- Timely Settlement: The claims are settled within a specific time frame, ensuring that farmers receive compensation for their losses promptly.
- Technology Integration: The scheme incorporates technology-driven processes such as remote sensing, satellite imaging, and smartphones for accurate assessment of crop losses and faster claim settlement.
- Voluntary Participation: Farmers have the freedom to choose whether or not to participate in the scheme. However, it is highly recommended for their financial security and risk management.
How to Apply for Pradhan Mantri Fasal Bima Yojana?
Farmers can apply for the Pradhan Mantri Fasal Bima Yojana through their respective banks or the Common Service Centers (CSCs) established by the government. The application process is simple and involves providing details about the cultivated area, crop type, and other relevant information. The premium amount is calculated based on the crop and sum insured, and the farmer needs to pay the designated premium to avail of the benefits of the scheme.
Benefits of Pradhan Mantri Fasal Bima Yojana
The Pradhan Mantri Fasal Bima Yojana offers numerous benefits to farmers, ensuring their welfare and financial stability. Some of the key benefits include:
- Financial Security: The scheme provides financial support to farmers in case of crop failure or yield loss, ensuring their economic well-being.
- Risk Mitigation: PMFBY mitigates the risks associated with farming by providing a safety net against natural calamities, pests, and diseases.
- Reduced Indebtedness: With compensation for crop losses, farmers can avoid falling into a cycle of debt and maintain their agricultural activities.
- Improved Agricultural Practices: The scheme encourages farmers to adopt modern agricultural practices, leading to increased productivity and efficiency.
- Stimulated Investment: By providing a safety net, PMFBY instills confidence in farmers, encouraging them to invest in better seeds, fertilizers, and technology.
- Crop Diversification: The scheme promotes crop diversification by providing coverage for various crops, reducing the dependence on a single crop.
- Women Empowerment: PMFBY recognizes women farmers as beneficiaries and allows them to participate in the scheme, promoting gender equality and empowerment.
Read more: Jharkhand Fasal Bima Yojana: Apply Online, Eligibility and Benefits
Frequently Asked Questions (FAQs)
Q1. What is the eligibility criterion for Pradhan Mantri Fasal Bima Yojana?
A. To be eligible for the PMFBY, the farmer must be engaged in agricultural activities and have an insurable interest in the crop. The scheme covers both loanee and non-loanee farmers.
Q2. Are all crops covered under the Pradhan Mantri Fasal Bima Yojana?
A. The PMFBY covers all food crops, oilseeds, and annual commercial/horticultural crops notified by the state governments. However, it is recommended to check with the local authorities for the list of crops covered.
Q3. How is the premium calculated under the scheme?
A. The premium under PMFBY is calculated based on the sum insured, the scale of finance, and the crop type. The central and state governments share a significant portion of the premium, reducing the burden on the farmers.
Q4. Can a farmer make multiple claims in a year under Pradhan Mantri Fasal Bima Yojana?
A. Yes, a farmer can make multiple claims in a year, provided each claim corresponds to a separate sowing period and the crop is insured accordingly.
Q5. How are the claims settled under the scheme?
A. The claims under PMFBY are settled based on the crop loss assessment conducted by the insurance company. The claim amount is directly transferred to the farmer’s bank account.
Q6. Is the Pradhan Mantri Fasal Bima Yojana mandatory for farmers?
A. No, participating in PMFBY is voluntary for farmers. However, it is highly recommended for their financial security and risk management.
Conclusion
The Pradhan Mantri Fasal Bima Yojana has emerged as a crucial initiative to safeguard the interests of farmers in India. By providing financial support and risk mitigation, the scheme ensures that farmers are protected against crop losses caused by natural calamities and other unforeseen circumstances. With its wide coverage, timely settlement of claims, and technology integration, PMFBY has brought relief to millions of farmers across the country. It not only enhances the economic well-being of farmers but also promotes sustainable agricultural practices and stimulates rural development.